select
|

Global Insight: Economic uncertainty filters into global house prices

(by Kate Everett-Allen)
 
Globally, house prices increased by 3.4% on average in the year to March 2016, but top-performing countries such as Turkey and Australia are seeing their rate of annual price growth slow. 
 
Turkey, which leads the annual rankings for the fourth consecutive quarter, has seen its rate of annual growth decline from 18% last quarter to 15%. Security concerns, Russian sanctions and mounting pressures on the lira are curtailing investment despite high demand and low supply characterising the wider property market.
 
Other strong performers such as Australia and New Zealand have also seen price growth moderate. Despite Australia’s recent rate cut to 1.75% prices are unlikely to keep growing at the same rate given mortgage debt is at a record high relative to income and December 2015 saw the introduction of new fees for foreign buyers.
 
House prices in New Zealand increased 11% year-on-year but have slipped from their peak in Q3 2015. Weaker economic growth and regulatory changes in the form of higher deposits for investors have dampened demand.
 
The US and the UK are largely treading water, price growth in the first three months of 2016 equated to 0.9% and 1.6% respectively, linked in part to political worries, notably a potential Brexit in the UK and the US presidential election.
 
Aside from Turkey, emerging markets have seen prices enter a period of flat or low growth since mid-2014. The BRIC nations recorded annual price growth of 3% on average in the 12 months to March 2016, four years ago this figure was closer to 11%. Capital flight, currency shifts (partly due to US rate rise), volatile equity markets and slowing wages are hampering demand.
 
Although Europe is no longer the weakest-performing world region – a title now held by Russia and the CIS – economic headwinds still persist in the Eurozone. Twelve of the bottom 20 rankings are occupied by European countries and of these, nine are members of the Eurozone.
 
For the full rankings read the Global House Price Index 





  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK