Australia in the top 5 for global property price growth

The last Knight Frank Global House Price Index Q3 20201 reported a 16.4% increase in Australian property market prices in the second quarter of 2021, which helped the country ranked fifth worldwide in the third quarter of 2021.

According to Shayne Harris, Partner and Head of Residential Sector at Knight Frank Australia: “It is interesting to see Australia take fifth place in the world for house price growth in the third quarter of 2021 – the last time we were in the market. top five was at the end of 2015, before the implementation of the tightened credit restrictions.

Globally, prices rose 9.4% on average in the 56 countries and territories covered by the index, with 96% of countries showing positive year-over-year increases, Knight Frank revealed. .

Turkey maintained its leadership position, registering growth of 35.5% over a 12-month period until September 2021.

South Korea took over New Zealand in second place, posting an increase of 26.4%, the latter slipping to third place to 21.9% during the period.

Sweden moved up one spot to fourth (20.3%) and, as previously mentioned, Australia rounds out the top five.

While the The United States was previously in the top five, it was kicked out – ranking sixth with growth of 18.7%.

Unprecedented growth and prospects

In calculating the numbers, Mr Harris weighed in on the impact of the pandemic on our real estate prices, explaining that from 2015 to 2020, the average annual price growth was 4.4%, reaching 9.8%. after the onset of the pandemic.

In addition, he highlighted the eight consecutive quarters of positive annual growth in the real estate market starting from the third quarter of 2021, which will likely be continue to rise as home inventories are low and lending rates are at historically low levels.

Still, Mr Harris acknowledged that the housing boom could slow as prices approach a tipping point for affordability “perhaps up to 10% (from 18% in 2021 to 8% in 2022) “.

Additionally, as overseas travel picks up and some aspects of pre-COVID life return in 2022, he concluded that we could expect Australians to be affected by further loan restrictions, an increase housing announcements and changing worries about how they are spending their money.

RELATED TERMS

Property

Property refers to a tangible or intangible item over which an individual or business has legal rights or ownership, such as houses, cars, stocks, or bond certificates.

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Australia in the top 5 for global property price growth



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Last updated: December 22, 2021

Posted: 23 December 2021