Knight Frank’s latest global price index indicates residential real estate prices around the world are climbing, except when it comes to Europe. The global average increase of 6.6% for the year ending in March was not helped by Europe, although it was bolstered by a 10.6% average gain in the Middle East. Big gainers by country include Hong Kong, China, South Africa and the United States, while Greece, Hungary and the Netherlands posted some of the most significant price declines. While Europe continues to suffer on the whole, Ireland has shown some improvement and the wider United Kingdom is performing better than many of its neighbors. For more on this continue reading the following article from Property Wire.
Average residential property prices around the world increased by 6.6% on an annual basis, the highest rate of growth since the second quarter of 2010.
The figures from Knight Frank’s global house price index also show that in the first quarter of 2013 prices rose by 2%. Property prices in all world regions, except Europe, increased in the year to March with the Middle East performing best, rising by 10.6% on average.
Hong Kong recorded the largest rise on an annual basis, up by 28%, while prices in China rose the most on a quarterly basis, up by 10.7%. The United States saw prices rise by 10.2%, its highest rate of annual growth since 2006
Greece recorded the largest annual fall in mainstream prices for the third consecutive quarter, declining by 11.8% while overall Europe is the weakest performing region with mainstream prices down by 0.3% on average during the last 12 months.
Some 35 of the 55 housing markets tracked by Knight Frank’s Global House Price Index recorded an increase in mainstream property prices in the year to March and the index now stands 14.7% above its recessional low in the first quarter of 2009.
Kate Everett-Allen, head of international residential research, said that mainstream property prices in Hong Kong and China look to be flouting the efforts of policymakers to cool their property markets. Both recorded price rises in the first quarter of the year despite a raft of measures to kerb escalating prices.
Prices in Hong Kong are, on average, 28% higher than they were a year ago and in mainland China prices are up by 23.8% in the last 12 months and by 10.7% in the first quarter alone.
Greece, Hungary and the Netherlands occupy the bottom three rankings this quarter having seen prices fall by 11.8%, 9% and 8.3% respectively. The Dutch market, which proved resilient in the aftermath of the financial crisis, is now starting to flag. Prices fell by 8.3% in the year to March driven by rising household debt and growing unemployment.
That said, there is some good news in Europe. Ireland has rid itself of double digit price falls. Prices fell by 3% in the year to March, compared to a 16% decline a year earlier. The UK’s property market is also improving. Here, prices rose by 0.2% in the year to March and stand 8.9% above their low in the first quarter of 2009.
Beyond Europe South Africa and the US are performing strongly. Prices rose by 11.3% and 10.2% respectively in the year to March compared with falls of 3.2% and 1.9% a year ago.
‘South Africa’s momentum is linked to an increasingly wealthy middle class who are tapping into the rising confidence of the wider African continent, keen to get on the property ladder,’ said Everett-Allen.
In the US prices have now risen for 12 consecutive months boosting consumer confidence which hit a five year high in May.
This article was republished with permission from Property Wire.