Latest NewsGlobal House Price RecoverySaturday, 01 October 2016

Australia’s residential property market is rebounding strongly…   Global residential property markets bottomed in the March quarter of 2009 with numerous markets rebounding in the June quarter…It does appear that the worst is behind us…Buyers are still being very specific when conducting their due diligence, but there is a greater willingness to commit and the overall sentiment in the market is improving…In Hong Kong and Singapore, the markets have rebounded and are [also] definitely on the move    [Knight Frank’s national director of research, Matt Whitby].  

Knight Frank’s key international highlights were as follows:

– Global housing markets show signs of tentative recovery with values increasing in almost half of the countries reporting prices for Q2 2009;

– Israel remains the top performer over a 12 month period with prices increasing 12.5% to the end of Q2 2009 ;

– On a quarterly basis, Norway saw the biggest rise with prices up 5.3% during the second three months of the year;

– Dubai recorded the largest annual (-47%) and second largest quarterly (-7.5%) drops in the index, but prices are now falling at a much reduced rate; and

– The quarterly drop in prices accelerated in less than 25% of locations.

Source: Knight-Frank; RP Data-Rismark

Liam Bailey, head of residential research, Knight Frank commented:

“It now appears that house prices are starting to stabilise across the world. The latest results from our Global House Price Index show values increased in almost half of the locations reporting price changes for the second quarter of the year. Significantly, quarterly price falls accelerated in only 22 per cent of the locations and did not exceed 10 per cent in any country. This compares with double-digit falls in a number of locations during the first quarter.

Israel remains the best performer on an annual basis and is the only country to have recorded double-digit growth (+12.5 per cent) in the 12 months to the end of June. A number of other countries, however, posted stronger quarterly gains with prices in Norway increasing by 5.3 per cent - the country’s second successive quarterly increase after a 4.1 per cent hike in the first three months of the year.

An imbalance between supply and pent-up demand also helped the UK’s housing market, which increased by 1.1 per cent in the second quarter. Even the US, where the sub-prime mortgage crisis started, is starting to see a recovery. Prices increased 1.3 per cent in the second quarter following falls of 7 per cent in each of the previous two quarters.

Prices are still falling in Dubai, but the decline has slowed sharply. The second-quarter drop in Dubai was only 7.5 per cent compared with a massive 41 per cent slide during the previous three months. While the market still remains over supplied, transaction volumes have started to increase on the back of reduced asking prices, the increased availability of credit and more certainty from developers regarding the completion dates of projects.”

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