Originally Posted by
PropVestor
Such decade long low interest rate environment creates 2 key things amongst others. Most notably, consumers are addicted to low credit and take on more risks. Lots of recent asset growth in SEA is driven by cheap credit and will continue as long as cheap credit goes on. Since funds have been piling on EMs in the region. Corporates including developers are trying to borrowing more (just like REITs gearing ratio +5%) and are able to bid higher for land prices. Even though their margins are squeezed here, their land bank value will eventually rise in value over time.
Hard to imagine a hard reset where interest rates goes up to above ~5% all of a sudden. Weed out the weak corporates and banks.
Hence, our coffee talk arrives at CMs are on the uptrend path rather than status quo since hard assets are one of the few hedge against macro volatility. My 2 cents suspicion is that we will hit higher sales in 2019 vis-a-vis 2018 in total sales as a start.