Global house prices step up a gear

The Knight Frank Global House Price Index, which tracks mainstream residential prices, increased by 2.7% in the year to September 2015.

Of the 55 housing markets tracked by the index, 45 (82%) recorded positive annual price growth in the year to September, an increase from 41 (75%) last quarter.

Key findings for Q3 2015:

  • Five countries recorded double-digit annual price growth; Turkey, Hong Kong, Sweden, New Zealand and Luxembourg
  • Scandinavia is performing strongly, with prices across the three countries rising on average by 7.8% year-on-year
  • The pace of decline in China has slowed, from -5.7% last quarter to -2.0% in the year to September
  • With a US rate rise looking imminent, we expect some emerging markets to slip down the house price rankings in 2016

 

The focus now is on when, and how quickly, the Federal Reserve raises the US interest rate. If analysts’ estimate of December is right, it will be the first time the US has embarked on a policy of monetary tightening since 2004, and it will have repercussions not just for the US housing market, but for those currencies pegged to the US dollar as well as emerging markets globally.

 

For the latest country rankings and full analysis view the Global House Price Index in full.

 

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Showing 1 comment

  1. Paul Williams

    #

    Good to see Spain and Portugal returning to annual growth. The southern European countries have been left some way behind after the credit crisis. At this point in the cycle they offer a good bet for investors.

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