The rapid deceleration in house price growth in recent months has seen South Africa slip markedly in the global performance rankings.
UK-based Knight Frank’s latest Global House Price Index shows that South Africa ended the third quarter of 2010 in 22nd place, down from 6th position in the second quarter.
UK-based Knight Frank’s latest Global House Price Index released earlier this week shows that South Africa ended the third quarter of 2010 in 22nd place, down from 6th position in the second quarter. Knight Frank tracks price movements in 48 countries across the world.
According to the latest index, South Africa managed house price growth of an average 3% in the third quarter. That is significantly down from the 14,8% recorded in the second quarter (year-on-year).
However, it’s not only South Africa where the housing recovery has lost steam. Liam Bailey, head of residential research at Knight Frank, says a number of countries have even tipped back into negative growth in the past three months. A total of 14 mainly European countries saw negative growth in the third quarter after they had experienced several quarters of rising prices.
Bailey says there is a growing gap between the less debt-afflicted European economies of Austria, France and Finland who rank in the top 10 and their neighbours to the south and west of the continent like Greece, Spain and Ireland who rank in the bottom 10.
The world’s top performing housing market in the third quarter was Latvia in Eastern Europe with growth of 26,1%. Ireland ended the third quarter at the bottom of Knight Frank’s global house price rankings with negative growth of -14,8%. The report shows that in Dublin declines of up to 50% have been recorded over the past two years.
Bailey says although there is some good news in that for the first time since late 2008 prices are rising in each of the six world regions -- Asia-Pacific is up 9,9%, the Middle East 5,1%, North America 4,2%, South America 3,5%, Africa 3% and Europe 0,8% -- the headlines don’t tell the full story.
Says Bailey: “Digging into the data we can see that there are still considerable issues playing out across global housing markets. While a majority of countries are reporting positive annual growth, 56% saw prices fall in the third quarter of this year.”
Bailey notes there is growing evidence that the global housing recovery, which began in early 2009 following desperate conditions in 2007 and 2008, may just be beginning to run out of steam. Nearly 30% of countries that experienced strengthening conditions in early 2010 saw quarterly price growth turn negative in the third quarter. - Joan Muller
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Showing posts with label global housing. Show all posts
Showing posts with label global housing. Show all posts
Friday, 10 December 2010
Friday, 11 December 2009
Global housing on the mend - December 2009
Investors across the globe are starting to return to residential property markets, following what has arguably been one of the longest and strongest real estate slumps the world has ever seen.
The Knight Frank global house price index for third quarter 2009 released earlier this week shows that house prices are now rising in almost 70% of the locations tracked by the British property group, compared to less than 50% in second quarter 2009. Knight Frank compares house price movements in 42 countries.
Liam Bailey, head of residential research at Knight Frank, says although house prices in almost 60% of the countries included in the index are still lower than they were a year ago, most markets have now turned the corner.
Singapore reported the biggest quarterly jump in prices with growth of 15,2% in third quarter. That was followed by Hong Kong (6,3%), Canada (4,9%), Australia (4,2%) and New Zealand (4,2%). South Africa ranks as the sixth fastest growing housing market in Knight Frank's index, with prices up 3,8% in the three months to September 2009 (quarter-on-quarter).
The UK and US, two of the countries hardest hit by the credit crunch and global recession, are also back in positive growth territory with quarterly price increases of 3,7% and 3,2% respectively.
On an annual basis, Israel is now the world' fastest growing housing market with prices rising 13,7% in the year to September 2009. That was followed by Austria (9,7%), Malta (9,7%) and Switzerland (7%). South Africa ranks 15th in the annual growth stakes with prices up 1,3% over the 12-month period.
Dubai is the biggest loser, with prices sliding a massive -47% in third quarter 2009 year-on-year (y/y). There are also a few European countries where prices are still falling on the back of what appears to an oversupply of stock. These include Spain, Denmark and Ireland.
Bailey says Dubai's recent debt woes have no doubt dented investor confidence in that country. The problems now seen in Dubai's housing market underscore the fact that the global housing recovery will not necessarily be smooth sailing, says Bailey.
However, he believes that any further house price falls are likely to be corrections rather than the start of another round of drastic reductions.
Link
Investors across the globe are starting to return to residential property markets, following what has arguably been one of the longest and strongest real estate slumps the world has ever seen.
The Knight Frank global house price index for third quarter 2009 released earlier this week shows that house prices are now rising in almost 70% of the locations tracked by the British property group, compared to less than 50% in second quarter 2009. Knight Frank compares house price movements in 42 countries.
Liam Bailey, head of residential research at Knight Frank, says although house prices in almost 60% of the countries included in the index are still lower than they were a year ago, most markets have now turned the corner.
Singapore reported the biggest quarterly jump in prices with growth of 15,2% in third quarter. That was followed by Hong Kong (6,3%), Canada (4,9%), Australia (4,2%) and New Zealand (4,2%). South Africa ranks as the sixth fastest growing housing market in Knight Frank's index, with prices up 3,8% in the three months to September 2009 (quarter-on-quarter).
The UK and US, two of the countries hardest hit by the credit crunch and global recession, are also back in positive growth territory with quarterly price increases of 3,7% and 3,2% respectively.
On an annual basis, Israel is now the world' fastest growing housing market with prices rising 13,7% in the year to September 2009. That was followed by Austria (9,7%), Malta (9,7%) and Switzerland (7%). South Africa ranks 15th in the annual growth stakes with prices up 1,3% over the 12-month period.
Dubai is the biggest loser, with prices sliding a massive -47% in third quarter 2009 year-on-year (y/y). There are also a few European countries where prices are still falling on the back of what appears to an oversupply of stock. These include Spain, Denmark and Ireland.
Bailey says Dubai's recent debt woes have no doubt dented investor confidence in that country. The problems now seen in Dubai's housing market underscore the fact that the global housing recovery will not necessarily be smooth sailing, says Bailey.
However, he believes that any further house price falls are likely to be corrections rather than the start of another round of drastic reductions.
Link
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