As house prices rise, some investors may no longer find purchasing homes to be a profitable enterprise. Other investors may want to lock in their gains and sell properties. The prospect of steady rental income and possible further capital gains, though, will likely continue to be attractive to many investors.
Accumulation of foreign exchange reserves by several Asian countries seems to be not only linked to the exchange rate policies and the related trade as well as employment implications but also, to the lack of confidence of these countries in the existing architecture. Concrete steps need to be initiated in right earnest to redesign the international financial architecture.