HOT TOPIC
HOT PROPERTY
Mixed fortunes for global house prices A round-up of the latest residential and commercial property
news and comment, from the UK and around the world. H
ouse prices in economies across the world increased by an average of 3.4 per cent in the year to the
end of March, according to Knight Frank’s Global House Price Index for Q1 2016, which tracked prices across 55 housing markets. The estate agent reported that prices in
the US and UK were “treading water”, partly because of upcoming political events – the presidential election in America and the EU referendum in Britain. Previous top performers such as Turkey
and Australia, it said, were seeing the pace of price growth slow, while Asian markets were “struggling to find traction”. Kate Everett-Allen, who heads
international residential research at Knight Frank, added, “Economic headwinds still
persist in the Eurozone. Twelve of the bottom 20 rankings are occupied by European countries, and, of these, nine are members of the Eurozone.” The report said that some Nordic
countries, together with some Baltic states, stood out as rare hotspots. At 12.8 per cent, annual price growth in Sweden was not far behind Turkey’s, and prices stood 48 per cent above their low in the first quarter of 2009. “Heading east,” it continued “Asian
markets are stumbling. Singapore, Hong Kong and Taiwan have all seen prices decline by between 3 and 6 per cent in the year to March 2016. A combination of sluggish economic growth, regulatory measures and new supply are restraining price growth.” The index placed Turkey at the top of
its rankings for price growth, although the annualised rate had declined from 18 to 15 per cent from the last quarter of 2015. “Security concerns, Russian sanctions
and mounting pressures on the (Turkish) lira are curtailing investment despite high demand and low supply characterising the wider property market,” said the report. It added, “Aside from Turkey, emerging
markets have seen prices enter a period of flat or low growth since mid-2014. The BRIC nations recorded annual price growth of 3 per cent on average in the 12 months to March. Four years ago, this figure was closer to 11 per cent. “Capital flight, currency shifts (partly due
to the US rate rise), volatile equity markets, and slowing wages are hampering demand.”
6 | Re:locate | Summer 2016
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