Global property price growth slows

Monday, March 28, 2011

Global property price growth slows

Global property prices increased by an average of 2.8 per cent during the fourth quarter of 2010, led by markets in Asia-Pacific, according to the latest Knight Frank Global House Price Index Q4 2010.

The rate of annual global property price growth was slower than the 3.1 per cent recorded in third quarter of 2010.

Average property prices in Asia-Pacific rose by 7.5 per cent year-on-year, followed by the Middle East and South America, where prices appreciated by an average of 5.3 per cent and 3.8 per cent, respectively.

The weakest region was North America which saw no change in values in the previous 12 month period.

The fastest rise in terms of countries was recorded in Hong Kong, where prices increased by a staggering 20.1% per cent, followed by Latvia (up 16.9%) and Israel (up 16.2%).

Liam Bailey, Head of Residential Research at Knight Frank, comments: "Our main headline confirms relatively benign conditions - with average annual price growth across the world at a modest 2.8 per cent.

"Of course this headline hides big regional and country level differences, but more concerning is the fact that this annual figure hides the fact that a growing number of countries are seeing negative quarterly price movements.

"Across an increasing number of European countries and also in the US markets were weaker in the second half of 2010, following a brief revival in the previous 12 months.

"This trend is being reinforced by weaker results from Asia-Pacific, with India, Taiwan and Japan all recording negative price growth in the second half of 2010.

"Across Europe and the US the lack of bank lending is likely to extend the recent period of price reversals.”


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