Wednesday, June 26, 2013

New boom in Global House Prices

26 Jun 2013
News : The latest Global Property Guide’s survey has been released today, (Wednesday 26 June) providing an insightful look into the global property market and revealing an overall trend that shows not just recovery but the start of another boom.

The Guide, looking at figures for the year to Q1 2013, shows what it calls, “The most significant global acceleration in house prices since the boom years of 2006/7.”

Using inflation-adjusted figures, the survey shows that house prices rose in 28 of the 42 housing markets which have so far published housing statistics. The nominal figures, though, show the “depth and breadth” of the boom – in the first quarter of this year, nominal house prices rose in 30 countries and fell in only 12.

Inflation is particularly high in several countries with high nominal annual house price rises (India, Brazil, pictured, Turkey, South Africa), so the two sets of figures are very different.

"The message coming from all around the world is that we're in a period of 'super boom'," Matthew Montagu-Pollock, the author of the guide, told OPP. “I've been amazed that this story has not been picked up by the mainstream press.

"I've been wondering for how long we could keep on fuelling property price inflation by cheap government money. It's like 2006 all over again," he continues, echoing the sentiments of many commentators over the last few months.

The US housing market has seen strong rises. House prices are going up – and going up faster. The S&P/Case-Shiller national home price index soared 8.31% during the year to end Q1 2013, the biggest year-on-year increase since 2006.

More European markets are showing signs of recovery. One example, Turkey, saw house prices rise 8.13% last year, in contrast with its 1.55% year-on-year decline seen in the year to Q1 2012.

Housing markets in Asia remain buoyant. In Hong Kong, house prices rose 20.14% year-on-year in Q1 2013, compared to an annual increase of 2.11% last year. House prices also rose in Delhi, Beijing, Taiwan, Tokyo and Thailand. Only Singapore saw a decline (of 0.58%).

New Zealand and Australia are also recovering, with price rises of 7.23% and 0.11% respectively in the year to Q1 2013.

The Middle East remains strong, with Dubai its best performer. House prices there saw an astonishing turnaround, rising by 28.02% in the year to Q1 2013 – compared to a 1.01 year-on-year decline in the previous year.

The recovery remains weak in one part of the world: some European housing markets remain depressed. Greece is the world’s weakest housing market, with house prices falling 11.53% in the year to 2013. House price falls have also accelerated in the Netherlands, Spain, Zagreb, Croatia and Russia.

The guide concludes, “The latest house price figures obviously show that the global housing slump is finally over. House prices are rising in more countries than not, and the momentum trend is clearly upwards.”

Read the full guide at

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