Global House Prices Rising at Fastest Pace in 15 Years
13 countries and territories registered double-digit growth in the first quarter.
2 min
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A boom in housing demand during the global pandemic has driven price growth to a 15-year high, according to a report released Wednesday.
The Knight Frank’s Global House Price Index, measuring average home prices across 56 countries and territories, rose 7.3% year over year in the first quarter, the fastest pace since the fourth quarter of 2006.
“A contributory factor to rising house prices globally has been the mass reassessment of housing needs in the wake of the pandemic, whether that’s been buyers seeking home offices, gardens or just to be closer to wide-open spaces,” Kate Everett-Allen, head of international residential research at Knight Frank, told Mansion Global.
“The demands on the home have increased in lockdowns and homeowners have reflected on where and how they want to live, prompting many to relocate or purchase a second home,” she added.
With a 32% year-over-year price increase, Turkey led the rankings for the fifth consecutive quarter. However, stripping out inflation, real house prices rose around 16% annually in the country.
“Turkey’s somewhat of a red herring,” Ms. Everett-Allen said. “Sales declined in 2020 but prices increased due to inflation and the weak Turkish lira. Construction costs are also rising due to tight supply chains.”
A total of 13 countries, primarily developed nations, registered double-digit annual price growth. Those include New Zealand (22%), the U.S. (13%), Sweden (13%), Austria (12%), Canada (10.8%) and the U.K. (10.2%).
“Homeowners in these developed nations have also seen some of the largest rates of accrued savings. For some, this may mean they now have a deposit for their first home, or enable existing homeowners to upgrade,” Ms. Everett-Allen said.
For example, the Bank of England estimates that U.K. householders have amassed some £250 billion (US$354 billion) in savings since the start of the pandemic, she said.
Wary of potential housing bubbles, some countries have adopted market-cooling measures to curb the rapid price growth since January. China, New Zealand and Ireland introduced higher stamp duties for investment properties.
China is also considering a national vacancy tax or property tax, as is Canada.
Home prices in China, excluding Hong Kong, rose 4.3% year over year in the first quarter, while Ireland home prices increased 3.7% during the same period.
However, not all countries experienced a housing boom in the first quarter. Four countries saw their housing prices drop from a year ago, including Malaysia (-0.9%), Morocco (-1.2%), India (-1.6%) and Spain (-1.8%), according to the report.
Reprinted by permission of Mansion Global. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: June 2, 2021
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This home has all the conveniences of modern living set in a dramatic landscape
2 min
Plenty of people are looking to get away from it all. But most are reluctant to give up the conveniences and small luxuries of modern living.
This split-level property at 166 Westwood Street, Bridport on the north coast of Tasmania offers both, with direct access to a stunning coastline as well as easy living in a three-bedroom, Hamptons-style home. Just a 10-minute walk from Mermaids Beach in the Granite Point dress circle, the house on a 1206sqm site is a two-hour drive from Devonport and the Spirit of Tasmania terminal port.
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The master suite includes a built-in robe and stylish, semi open ensuite. Sliding doors lead onto the split level deck, with a spa on the lower side to provide privacy.
The well-appointed kitchen includes a large butler’s pantry, as well as an island bench and bar area with finishes such as Carrara marble chosen to blend seamlessly into the lounge and dining area. A stone fireplace is the main focal point in this room, while ducted heating and aircon ensure that thermal comfort is maintained all year round.
At 334sqm, the house is large enough to provide room for family and friends when required, bt cosy enough for two, without spending unnecessary time on maintenance and cleaning.
With Barnbougle Dunes and Lost Farm golf courses just 10 minutes away, local wineries and mountain biking at nearby Derby, this is an ideal property for downsizers looking for a little luxury while still feeling connected to nature.
Address: 166 Westwood Street, Bridport
Inspection: By appointment
For sale: By Offer
Price guide: $2.3m t0 $3m
Agent: Andrew MacDonald, The Agency, 0409 368 151 andrewmacdonald@theagency.com.au
