Knight Frank have released their latest Global House Price Index for Q1 2021, analysing the residential market across the globe. Over the most recent 6 month period, Australian house prices have grown by 8.7%, constituting the fourth fastest rate of growth globally
Globally, house prices are rising at their fastest rate since Q4 2006. Knight Frank’s Global House Price Index, a means of benchmarking average prices across 56 countries and territories, increased 7.3% in the year to March 2021.
Turkey leads the rankings for annual price growth for the fifth consecutive quarter, but strip out inflation and real prices are rising at around 16% per annum.
Aside from Turkey the top ten is largely comprised of developed nations, including New Zealand (22%), the US (13%), Sweden (13%), Austria (12%) and Canada (11%).
With thirteen countries recording double-digit price growth in the year to Q1 2021 it is no surprise that talk of post- pandemic housing bubbles is increasing but authorities are already starting to take action.
Key global findings include:
Key findings for the Australian residential market are:
Knight Frank’s Head of Residential Research Australia, Michelle Ciesielski said, “One year on, Australia’s residential market has proved particularly resilient despite a global pandemic, with house price growth of 4.1% in Q3 2020 faring much better than many other countries and territories which experienced stricter lockdowns."
“Since then, Australian house prices have been heating up with the 8.7% growth over the six-month period the fourth fastest rate of growth globally – behind only Lithuania, New Zealand and Turkey."
“The last time Australia’s mainstream market saw double-digit growth was in September 2017 with 10.2%. Australia is on the verge of reaching this status once again, with the cities dominating Australia’s price growth of Perth, Sydney and Canberra likely to each record double-digit growth by the end of the year."
“In recent weeks, we’ve seen some stability in Australia’s mainstream property market with many buyers reaching their borrowing capacity under the responsible lending regime and simply being priced out once again from the major capital cities."
“Although we need to be mindful we’re only days into the winter season, there is enough fuel for house price growth to be fired up again in the spring selling season by investors returning to the market, encouraged by low mortgage lending rates, three more months of savings and a strengthening economy."
Click here to download and view the full report.
The views expressed in this article are an opinion only and readers should rely on their independent advice in relation to such matters.
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