Global house price rises at strongest in 16 years
That’s according to the latest global house price index from Knight Frank, which tracks house price movements across 55 countries and territories.
It found that in the year to June 2021, prices grew by an average of 9.2 per cent, with Turkey seeing the strongest growth at 29.2 per cent, ahead of New Zealand (25.9 per cent), the United States (18.6 per cent) and Slovakia (18.6 per cent).
The UK took 12th spot in the study, with growth at 13.2 per cent. It’s the highest rate of annual growth seen in 17 years.
In total, 18 nations and territories registered price growth of at least 10 per cent, up from 13 in the last quarter and seven a year ago.
Only India and Spain saw prices drop over the year, the lowest proportion of nations registering a decline in prices since Knight Frank started compiling the global house price index in 2008.
Knight Frank noted that there was a clear divide between developed and developing nations. Ten of the world’s developed nations averaged price growth of 12 per cent over the 12-month period, more than double the 4.7 per cent rate of growth seen in developing economies.
Knight Frank warned that there were signs of “softening demand” in some markets, noting that in the US, mortgage applications have dipped, while the share of households thinking now is a good time to buy has fallen to just 28 per cent, the lowest level in a decade.
The report added: “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.”
A study last month by Comparethemarket.com, based on data from the Office for National Statistics, suggested that house prices in the UK could jump by as much as 30 per cent over the next decade.