Index sees the highest rate of growth in three years at 6.5% increase
19 June 2017, Malaysia – Knight Frank, the independent global property consultancy, today launches the Global House Price Index* for Q1 2017.
The index monitors and compares the performance of mainstream residential markets in 55 countries across the world, 11 of which are from Asia-Pacific.
The index increased by 6.5% in the year to March, its highest rate of growth over the last three years. This is up from the 6.0% growth in the previous quarter.
Results for Q1 2017
Eleven countries recorded double-digit price growth in the year to March 2017; a year earlier, only four fell into this bracket. Iceland leads the rankings for the second consecutive quarter, recording average price growth of 17.8% in the year to March 2017. Here, a lack of supply is fuelling price growth.
Price growth in China has slipped marginally to 10.3% per annum with more than 45 cities having implemented home purchase restrictions. Ahead of their 2017 elections, France and the Netherlands saw price growth increase; South Korea, the UK and Germany are seeing price growth slow.
Nicholas Holt, Head of Research for Asia-Pacific, says, “Three of the top 10 strongest growing markets globally were in Asia-Pacific at the end of the first quarter of 2017. Hong Kong, in second place continues to see price growth despite the newly introduced lending restrictions, while New Zealand in third place has also seen the central bank act to curb excessive lending. China, in 10th position, is also seeing policy makers step in to cool many of the major city markets – although the headline national figure is somewhat tempered by weaker growth in some of the smaller Tier-3 and Tier-4 cities.”
Kate Everett-Allen, Partner, International Residential Research, adds, “As the UK prepares for its fourth national poll in seven years, data suggests property prices continue to ease with annual growth reaching 4.1% in the year to March, down from 5.3% a year earlier. A brief look at some of the key elections in 2017 shows France and the Netherlands stand out as two key countries where price growth strengthened ahead of their polls.”
Judy Ong, Executive Director, Research & Consultancy, comments, “Growth continues to moderate with the Malaysian House Price Index (MHPI) increasing by only 5.5% in Q4 2016 (preliminary) relative to Q4 2015, its slowest pace since 2010. On a quarterly basis, the MHPI posted its first decline (-0.7%) since the global financial crisis in 2008 (Q3 2008 – Q4 2008: -1.9%). The slowdown in the property market may be bottoming out as sentiment improves, supported by the recent rebound in the country’s economic growth with 5.6% expansion in Q1 2017 (Q4 2016: 4.5%) and strengthening of the local currency amongst other factors.”
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