The inflation observed on Mercer International basket in Asia is lower than for March 2008 edition. The decline of gasoline prices is one of the main drivers for low inflation rates. 

Due to the economic down turn, most Asian Pacific rental real estate markets have experienced a slow down in 2008.

Some cities have been highly impacted; this is Hong Kong, Singapore and Tokyo. Indian cities, such as Mumbai, New Delhi have also experienced some strong corrections. In other locations such as Beijing and Shanghai in China, Hanoi and Ho Chi Minh in Vietnam the markets are starting to soften. Australia’s housing market is cooling fast after years of house price increases however rental prices are showing signs of increase in Sydney as demand remains strong.