Global House Prices see strong growth but challenges lie ahead

07 December 2016

Trends in the global housing market followed a similar narrative to those seen last quarter with price growth converging in the third quarter. However, with a growing list of challenges including resurgent price growth in China, Brexit and an expected US rate rise, it’s unlikely to be ‘business as usual’ next quarter.

Key Findings:

  • The Knight Frank Global House Price Index increased by 5.3% in the year to September, its highest rate for two years 
  • Although Turkey occupies the top ranking for annual growth (13.9%), New Zealand (13.5%) and Iceland (12.9%) are catching up
  • UK house prices have proved resilient following the EU Referendum, underpinned by a lack of supply and ultra-low mortgage rates
  • Average US house prices now exceed their pre-financial crisis peak in 2006
  • Resurgent house prices in China and Hong Kong have prompted new regulation and taxes to control price inflation

Kate Everett-Allen, Partner, International Residential Research at Knight Frank says, “September marked a new high for US house prices, which have now exceeded their previous peak recoreded in July 2006.” 

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For more infomation please contact Astrid Etchells, International PR Manager: Astrid.etchells@knightfrank.com