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there are coordination failures between the cities, between the central
government and local government. Also, the housing finance is still
quite expensive in many developing countries, which adds to the costs.
But I think governments could do a better job in easing this supply, as
seen in the case of Singapore. Singapore expanded the supply very much
progressively, and now the outcome there is a lot different from where
you actually live now, in Hong Kong. I think that makes a big difference.
» Moderator | Henny Sender
We'll come back to a lot of these points, including the role of policy Session II
and regulation, role models, and prescription, and we will have a lot of
discussion about Singapore, because I think it is such an important role
model. Simon, on to you. Simon is going to talk about the housing issue
and the role of financing. Thanks, Simon.
» Presenter | Simon Walley So, starting off with some numbers. I'm an economist, I like numbers,
Lead Financial Sector Specialist, World Bank it's how I understand things. If you look at the top chart, you've got
a long list of countries and the bars represent essentially the depth of
Thank you very much, good afternoon everyone. Firstly, thank you to the mortgage market. It's mortgage debt to GDP. So, you have around
KHFC for the kind invitation here and the amazing organization, I have 43 countries in the pink group. Many of the countries present here
to say. What I'm going to try do is to pick up from where Matthias left off, today, you're in there. So, we have Malaysia, Singapore, Thailand, and
and make the bridge between housing needs through to capital markets. Korea, you're all in there. These are the countries that have really got a
And the premise of my presentation is the housing needs at the moment developed mortgage market that's gone to scale. When mortgage debt
on the global level are largely unmet; they're growing, governments alone outstanding represents more than 15 percent of the equivalent GDP
can't meet them, and you need leverage basically. You need to leverage the amount. You then have a number of transition countries, as you might
finance, you need to leverage the resources, you need the private sector call them, seeing that mortgage market grows quite rapidly, but still
to play their role. To do that, you need to bring capital markets in. It's maybe have not reached the scale needed. There, you've particularly
about having the right instruments, the right institutions. So, I'm going to got China and India, which I think is about 12 percent these days. This
start off. I've got a few slides just setting some context about the housing is just 17 countries. On the far right, you have the green bars, and for
needs, setting the problem statement as it were, of where housing's those countries we were able to get data, we've got about 135 countries
needed, and why it's needed. Then, I'll jump to a specific case study of there. That is the vast majority of the world in all honesty. The difficulty
what we've done recently in India, a project which just closed. Finally, I'll is many of these countries barely register, so it's not even close to five
try and make that link in the conclusions and how you bring it back to percent. It's literally a handful of mortgages.
the capital markets.
328 2019 6th AFIS & ASMMA Annual Meeting 329
