In 2018, price and rent momentum is likely to slow only marginally, at best. The
housing shortage and the flourishing labour market continue to be the key price
Demand in 2018 will be dampened by high prices, which ought to
squeeze many potential buyers out of the market. Other dampening factors are
higher capital market rates and the resulting slight increase in mortgage rates.
For end-2018, we expect 5- to 10-year mortgage rates to inch up to 2%
Given strong price momentum in 2017 and the persistent
shortages, the reduction of which should take many years, the risk of a real
estate bubble in the current cycle has increased visibly.