ULF DANIELSSON is thinking of buying a holiday home—or even a new house, so that he, his wife and two children can have a garden and more space than in their flat in Uppsala. He can afford either, he says, and as a professor of astrophysics is surely able to work that out. But he is hesitating, lest the giddy rise in Swedish property prices end in an ugly crash. “You risk having a big loan that’s worth more than the house,” he says.The property market has fallen a little closer to Earth: prices dropped by 9% between September and January, largely because of a surfeit of pricey new flats. They then steadied, and are around 5% below the peak—and 50% higher than at the start of 2013, calculates Valueguard, a data provider. As Swedes have borrowed to buy, their debts have risen. Finansinspektionen (FI), the financial-stability supervisor, estimates that borrowers’ debts rose by 36% between 2012 and 2017, while disposable incomes went up by 13%. Almost a fifth of households with new mortgages owe more than six times net income.
SINGAPORE: Shares in Noble Group surged 36 per cent on Friday (Jun 22) after the embattled commodities trader secured US$100 million in trade finance facilities from a group of investors, winning fresh support for a US$3.4 billion debt restructuring plan that is key to its survival.
In a ...
KUALA LUMPUR (June 22): Malaysia’s new central bank governor will inherit economic stability with a dose of political uncertainty and global pressures when she takes office.
As a former deputy head of Bank Negara Malaysia who investigated the scandal-plagued state fund 1MDB, Datuk Nor Shamsiah Mohd Yunus is no stranger to central bank watchers in the Southeast Asian economy. They’ll be monitoring closely how she shapes policy under volatile conditions for the global economy and emerging markets.