The world’s housing markets continue to surge, and the boom now includes Europe, North America, and some parts of Asia.
Of the five strongest housing markets in Global Property Guide’s annual survey, three are in Europe. Ireland leads the way with an increase of 10.81 percent. Estonia is second with 8.99 percent, and Iceland is third with 6.19 percent.
Hong Kong is the top market in Asia with property price increases of 16.43 percent while the Philippines in second spot rose 6.61 percent.
The biggest decline in the world came in the UAE where the sizzling Dubai property market has hit the skids. Emirates property prices are down 11.71 percent. Russia and Ukraine also fared poorly, dropping 11.13 percent and 10.64 percent respectively.
During the year to June 30 2015, house prices rose in 24 of the thirty nine world’s housing markets which have so far published housing statistics, using inflation-adjusted figures. The more upbeat nominal figures, more familiar to the public, showed house price rises in 28 countries, and declines in 11 countries.
In the second quarter of 2015, 22 housing markets showed stronger upward momentum, while 17 housing markets showed weaker momentum. Momentum is a measure of the “change in the change”; simply put, momentum has increased if a property market has risen faster this year than last (or fallen less).
Inflation-adjusted figures are used throughout this survey, which covers the period till the end of the second quarter of 2015. In the case of Kiev, Ukraine, the Global Property Guide adjusts using the official U.S. inflation rate since Ukrainian secondary market dwelling sales are denominated in U.S. dollars, as is the house-price index.
Of note is the fact that 3 of the five top performing markets in the world are in Europe. Ireland’s residential property prices continue to soar, rising 10.81 percent during the year to June 30 2015, slightly down from a y-o-y increase of 11.9 percent last year. In a sign the market might be cooling, during the latest quarter, the second quarter of 2015, Irish house prices increased just 0.47 percent.
Nonetheless, the Irish economy is now the fastest-growing economy in the EU, with GDP growth of 4.8 percent last year, after meagre growth of 0.17 percent in 2013 and a contraction of 0.3 percent in 2012. The Irish economy is expected to grow by a robust 5 percent to 6 percent this year.
Aside from the top 3 of Ireland, Iceland and Estonia, other strong European housing markets included Romania, with house prices rising by 4.83 percent during the year to June 30 2015, Norway (4.26 percent), UK (4.11 percent), Germany (3.93 percent), Switzerland (2.76 percent) and Netherlands (2.11 percent). All, except the UK and the Netherlands, performed better in Q2 2015 compared to a year earlier. Moreover, all saw positive quarter-on-quarter growth rates during the latest quarter.
European housing markets with minimal house price rises included Portugal, with house prices rising by 1.53 percent during the year to Q2 2015, Lithuania (1.15 percent), Slovak Republic (0.92 percent), and Latvia (0.65 percent). Only Portugal saw positive quarterly growth during the latest quarter. In addition, only Portugal and Slovak Republic performed better in Q2 2015 compared to the previous year.
Some of Europe remains depressed. Russia is now the second weakest housing market in the global survey and saw the biggest annual house price decline in Europe. Russia’s residential property prices dropped 11.13 percent y-o-y in Q2 2015, worse than the decline of 5.96 percent y-o-y to Q2 2014 and the biggest annual drop since Q4 2011. During the latest quarter, house prices dropped 2.92 percent in Q2 2015.
Ukraine’s housing market continues to struggle, amidst an economic and political crisis. In Kiev, average prices of new residential properties plunged by 10.64 percent during the year to June 30 2015. Quarter-on-quarter, house prices fell by 1.61 percent in Q2 2015. These sharp house price falls are mainly attributable to the high interest rates imposed to fight hyperinflation.
Other weak European housing markets included Greece, with house prices falling by 3.88 percent during the year to Q2 2015, Spain (-3.56 percent), Cyprus (-3.18 percent), Zagreb, Croatia (-2.42 percent), and Finland (-0.79 percent). All, except Finland, saw price falls during the latest quarter. Despite this, house prices in Greece, Cyprus and Finland rose more during the year to Q2 2015 than the previous year. Spain and Croatia’s price falls, greater than last year, were disappointing.
Asia goes two ways – half of Asia is strong. Hong Kong is the top performer in the global house price survey. Hong Kong’s residential property prices surged by 16.43 percent during the year to June 30 2015, a sharp turnaround from a drop of 0.66 percent during the previous year to Q2 2014. Hong Kong’s housing market slowed sharply in the first half of 2014 due to government cooling measures, but then bounced strongly back. Housing prices rose by 3.83 percent q-o-q during Q2 2015.
In the Philippines, the average price of 3-bedroom condominium units in Makati CBD rose by 6.61 percent during the year to Q2 2015, an acceleration from the modest 2.73 percent price increase during the year to Q2 2014. Housing prices increased 0.91 percent q-o-q during Q2 2015.
Likewise, Japan’s housing market rose strongly during the year to Q2 2015, thanks to Prime Minister Shinzo Abe’s economic stimulus package. In Tokyo, the average price of existing condominiums rose by 6.13 percent during the year to June 30 2015, up from a growth of 2.68 percent the previous year. However, property prices dropped during the latest quarter (Q2 2015) by 0.5 percent.
In Thailand, housing prices rose by 3.72 percent during the year to June 30 2015, mildly up from an annual growth of 2.28 percent the previous year. However house prices fell during the latest quarter, by 1.12 percent.
In South Korea, the nationwide housing purchase price index rose by 2.03 percent during the year to Q2 2015, in contrast with a 0.42 percent annual decline during the year to Q2 2014. House prices increased by 0.65 percent q-o-q during the latest quarter.
Half of Asia continues to lose steam. Prices continue to fall in five of the ten Asian markets for which figures are available in Q2 2015. Four performed worse than the previous year. Singapore’s housing market continues to struggle, with house prices falling by 3.38 percent during the year to Q2 2015, its seventh consecutive quarter of house price falls. House prices fell by 0.69 percent q-o-q during the latest quarter.
Taiwan’s house prices dropped 2.16 percent during the year to Q2 2015, a sharp turnaround from the previous year’s rise of 5.2 percent, due to government cooling measures. During the latest quarter (Q2 2015), house prices increased by 1.67 percent.
In Indonesia, residential prices in the country’s 14 largest cities fell by 1.74 percent during the year to Q2 2015, in contrast with last year’s y-o-y rise of 0.74 percent. House prices fell by 0.14 percent q-o-q during the latest quarter.
Vietnam’s house prices fell 0.27 percent y-o-y to Q2 2015, similar to the 0.03 percent decline during the year to Q2 2014.
China’s house price falls are now decelerating. Shanghai’s second-hand houses price index fell only 0.12 percent during the year to Q2 2015. In fact during the latest quarter house prices in Shanghai actually rose by 3.37 percent.
North America’s housing markets are strong. The SP/Case-Shiller seasonally-adjusted national home price index rose by 4.39 percent during the year to end-Q2 2015, stronger than last year’s rise of 4.15 percent y-o-y to Q2 2014. Also stronger was the Federal Housing Finance Agency’s seasonally-adjusted purchase-only U.S. house price index, which rose by 5.39 percent y-o-y to Q2 2015, up from a rise of 3.49 percent during the year to Q2 2014. As a reminder, all figures are inflation-adjusted.
Canada’s house prices rose by 4 percent in the country’s eleven major cities during the year to Q2 2015, up from 2.03 percent the same period last year, and the biggest increase since Q1 2012. During the latest quarter (Q2 2015) Canadian house prices increased 1.78 percent.
Dubai’s house price falls are accelerating; Israel remains strong. After spectacular house price rises from 2012 to 2014, Dubai’s residential property prices plunged 11.72 percent during the year to Q2 2015, the second consecutive quarter of house price falls, and the biggest y-o-y drop since Q1 2011. Dubai’s house prices dropped 4.28 percent during the latest quarter.
In contrast, Israel’s housing market remains robust. The nationwide average price of owner-occupied dwellings rose by 5.22 percent during the year to Q2 2015, only slightly less than last year’s rise of 5.95 percent to Q2 2014. However, house prices actually dropped 1.31 percent q-o-q in Q2 2015.
New Zealand’s housing market is mixed, with nationwide median house prices rising by a healthy 5.19 percent during the year to Q2 2015, only slightly less than the rise of 6.66 percent during the year to Q2 2014. However, house prices dropped a surprising 5.61 percent q-o-q during the latest quarter, Q2 2015.
South Africa’s housing market is slowing, with the price index for medium-sized apartments rising by a meagre 0.6 percent during the year to Q2 2015. House prices actually dropped 1.02 percent q-o-q in Q2 2015.
Brazil’s house prices continue to fall, amidst economic recession and a depreciating currency. In Sao Paulo, house prices dropped 3.52 percent during the year to Q2 2015, In contrast to a 5.37 percent increase during the year to Q2 2014. Quarter-on-quarter, house prices dropped 1.61 percent during the latest quarter.
– Big News Network.com | Thursday 17th September, 2015
http://www.bignewsnetwork.com/news/236829935/property-prices-still-climbing-in-most-parts-of-world