Residential Real Estate News
Global Home Price Annual Growth Averaged 7.3 Percent in Q1
Turkey Enjoys the World's Highest Annual Home Price Growth Rate
According to Knight Frank, globally house prices rose at their fastest rate since Q4 2006. Knight Frank's latest Global House Price Index, a means of benchmarking average prices across 56 countries and territories, increased 7.3% in the year to March 2021.
Turkey leads the rankings for annual price growth for the fifth consecutive quarter, but strip out inflation and real prices are rising at around 16% per annum.
Aside from Turkey the top ten is largely comprised of developed nations, including New Zealand (22%), the US (13%), Sweden (13%), Austria (12%) and Canada (11%).
With twelve countries recording double-digit price growth in the year to Q1 2021 it is no surprise that talk of post-pandemic housing bubbles is increasing but authorities are already starting to take action.
Cooling measures return
Since January 2021, authorities in China, New Zealand, and Ireland have intervened with a range of measures from tighter lending rules to higher stamp duties for multiple purchases. Canada is also looking closely at a national vacancy tax and China is mulling over a national property tax.
It's not a global boom
Behind the news headlines, Knight Franks says there are several large economies where strong price growth remains elusive and where sales have yet to gain traction - Italy (1.6%), India (-1.6%) and Spain (-1.8%) all recorded lower price growth in Q1 2021 than a year earlier either due to stringent lockdowns, economic concerns or excess supply.
