- 55 countries analysed by Knight Frank have seen house prices rise by 9.2% on average
- Turkey is top of the list, recording 29.2% price growth
- Report suggests the global housing market has peaked
Australia is the seventh-highest country in terms of house price growth during the second quarter of 2021, according to a new report from Knight Frank.
Knight Frank’s Global House Price Index for Q2 2021 has shown that the pandemic-induced housing boom has seen prices rise by 9.2% on average across 55 countries.
The picture, however, is nuanced when broken down between developed and developing economies.
Average price growth of 12% in the 12 months to June was recorded in ten of the world’s developed economies. This is double the rate seen in key developing markets (4.7%).
The Knight Frank Global House Price Index Q2 2021
Turkey leads the annual rankings with 29.2% growth – although this rate has slowed down.
New Zealand closely follows with 25.9% growth and the United States is at third place at 18.6%.
Australia is in seventh place at 16.4%, just below Luxembourg (17%) and marginally above Canada (16%).
18 markets on the list recorded double-digit growth, up from 13 during Q1 and seven a year ago.
India and Spain were the only markets where prices declined in the year to June 2021.
Notably, this is the lowest proportion of markets recording a decline since the index began in 2008.
Close to the peak
Despite the very high levels of growth – extraordinary given the pandemic and global, albeit relatively brief, recession – the report notes there are signs of market demand softening.
“In the US, mortgage applications have dipped and the share of households thinking now is a good time to buy hit a decade low of 28% in June,” the report said.
“The prospect of interest rate rises in markets such as New Zealand, the US and the UK is also likely to weigh on buyer sentiment in the medium term.
“But conversely, recent tighter restrictions in South East Asia, New Zealand and Australia may yet spark renewed activity as lockdowns shine a light on homes and lifestyles.”
Kinght Frank Global House Price Index Q2 2021