A report issued by the Ministry of Construction has found that new residential real estate developments are stagnant but demand for housing is high and that’s pushing up prices, The Investor is reporting.
The article says the completion rate of new buildings is well down due to legal hurdles and capital–though the legal hurdles are not new and it’s more likely the latter that is causing the problems. A loss of confidence in the bond market from investors after two high-profile arrests for fraud and monetary policy that has seen big swings in interest rates, as well as cash available to lend, has seen firms across the board, but in real estate in particular struggle to raise the capital needed to build more dwellings to quell demand.