What’s happening to house prices around the world?

Global Property Guide, in its latest house price survey, confirmed the full-scale boom of global housing markets. The basis of that prognosis is the result of the 1st quarter 2013 survey that found 28 of 42 housing markets that have published housing statistics enjoyed increases in house prices.

The guide confirmed observations that the global housing slump has ended, house prices are going up in more countries and momentum trend is upward.

Here is a clearer picture of how the housing markets are performing by region.

US – The seasonally adjusted national home price index of S&P/Case-Shiller grew 8.31% in the last 12 months, ending on Q1 2013. It is the largest year-on-year increase since the first quarter of 2006, resulting in consumer confidence reaching a five-year high, pick up in construction activity and drop in delinquency rates.

Europe – Signs of recovery in many markets. Among those markets that showed large improvements are: Turkey – 8.13%, Denmark – 7.01%, Norway – 4.75%, Estonia – 4.2%, Poland – 3.24%, Sweden – 3.11% and Switzerland – 2.42%.

Asia – The region’s housing market remains buoyant, led by Hong Kong, which logged a 20.14% increase. Other markets that also registered boosts in home prices are in China – 5.92%, Taiwan – 3.24%, Philippines – 2.34%, Japan – 2.12%, Indonesia – 2.04% and Thailand – 1.48%. However, Singapore suffered a 0.58% decline in home prices.

Pacific – New Zealand’s median house prices achieved an impressive 7.23% growth rate while Australia had a slower growth of only 0.11%.

Middle East
– Like the other regions, the Middle East too enjoyed substantial expansion in home prices, led by the United Arab Emirates at 28.02%, followed by Israel at 6.34%.

Africa – Prices of medium-sized apartments in South Africa went up 3.09%.

Global Property Guide pointed out that Europe is a special case, given that the Eurozone had a rough time the past few months because of the currency crisis due to the Greek default, right on the heels of the global financial crisis.

Yet, despite that handicap, of the 25 European housing markets included in the guide’s survey, 14 performed better as against 11 that had poorer performance in Q1 2013 compared to 2012.

The growth was experienced even outside the housing market. For instance, the Turkish economy expanded with a real GDP growth rate of 3%, its 14th consecutive quarter growth.

Some, however, showed only minimal increases in house prices such as Romania – 0.52%, Latvia – 0.3% an Finland 0.29%.

Understandably, Greece remains the weakest market, with home prices declining 11.53%. The contraction is felt in the entire Greek economy, which is dragging due to the prolonged recession, while consumption and investments fall and the government continues to cut corners as part of its IMF-imposed austerity programme.

Source: Vittorio Hernandez, PropertyLife

Leave a Reply

Real Estate Blogs