House prices around the world rose by 2.4 per cent in the second quarter of 2013, the highest rate of annual growth since the second quarter of 2010, according to Knight Frank’s latest Global House Price Index.
The most recent data shows that prices rose in 37 of the 55 countries tracked by the index, compared to just 27 two years earlier.
What’s more, the average property price in Europe rose for the first time in three years during the second quarter of this year. Combined, property prices across Europe rose by 0.7 per cent, although there are significant differences between the best and worst performers. Turkey recorded the highest annual price rises in the continent between the second quarter of last year compared to this year (up by 12.2 per cent), while in Greece prices fell by 11.5 per cent during the same period.
Overall, the highest property price increases in the second quarter of 2013 were seen in Taiwan, where prices increased by 7.4 per cent, followed by the United States (7.1 per cent), Lithuania (5.4 per cent), Estonia (5.2 per cent) and Dubai (5 per cent).
The biggest falls in this same period were recorded in Croatia (-4.4 per cent), Malaysia (-2.6 per cent) and Greece (-2.5 per cent).
On an annual basis, Dubai leads the way in terms of house price growth, with values increasing by 21.1 per cent in the year to the end of June. “The emirate’s housing market has gained momentum since late 2012,” explains Kate Everett-Allen, head of International Residential Research at Knight Frank. “While its prime market led the way, mainstream prices are now following suit.”
Other significant annual price rises were recorded in Hong Kong (19.1 per cent), Taiwan (15.4 per cent), China (14.8 per cent) and Colombia (12.7 per cent).
However, while property prices in Europe may have increased slightly in the second quarter of this year, when taken on annual basis, the data doesn’t look so encouraging.
“For the fourth consecutive quarter the bottom ten rankings have all been occupied by European countries,” explains Everett-Allen. “While Greece (-11.5 per cent), Spain (-7.6 per cent) and Portugal (-2.4 per cent) dominate the headlines, the sluggish markets of The Netherlands, Hungary and Croatia are often overlooked. These countries recorded price falls of 8.5 per cent, 8.2 per cent and 5.5 per cent respectively in the year to June.
“Tight lending conditions, high levels of consumer debt and rising unemployment are depressing market activity,” she added.