Worldwide, Urban Home Values Are Outperforming
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Worldwide, Urban Home Values Are Outperforming

Worldwide, metro areas saw an average price growth of 9.8% in the second quarter.

By V. L Hendrickson
Tue, Oct 5, 2021 10:54amGrey Clock 2 min

Worldwide, metro areas saw an average price growth of 9.8% in the second quarter, outpacing the 9.2% average growth registered across 55 countries and territories, according to Knight Frank’s Global Cities Index, released Monday.

About 38% of the 150 cities tracked in the report registered a rise in prices of 10% or more year over year, the data showed.

“Predictions of ‘the death of the city’ now seem a distant memory,” Kate Everett-Allen, Knight Frank’s head of international residential research, said in the report.

Halifax, in Nova Scotia, saw the biggest growth, with prices 30.8% higher in the second quarter  than they were in the same time period in 2020. Izmir, Turkey, and Seoul, South Korea, tied for the No. 2 spot with annual price growth of 30%, followed by Phoenix, with 29.3%, and Moscow (28.8%). 

Of the 57 cities that saw a double-digit price growth, only one was in mainland China— Guangzhou, which had an 11.4% jump in the second quarter, compared to the same time last year, the report found.

“Two years ago, six Chinese mainland cities fell into this bracket,” Ms. Everett-Allen continued. “The scale of the divergence in U.S. and Chinese mainland house prices is significant. We track 15 cities in both markets and on average those on the Chinese mainland saw prices rise by 5.6% over the 12-month period whilst U.S. cities saw prices jump by 19.6%.”

Eleven cities registered negative price growth, with Venice, Italy, seeing the biggest slip, 6.3%, the data showed. Kolkata, India, and Dubai were also at the bottom of the list, with prices down 6.3% and 5.2%, respectively.

However, Ms. Everett-Allen noted that the boom could be coming to an end.

“After 18 months of inertia, governments with heated housing markets are formulating their policy responses,” she said, noting that interest rates have already risen in Norway and New Zealand, with the U.S. and the U.K. set to follow suit. “We expect the index rankings to look very different in 12 or even six months’ time.”

Reprinted by permission of Mansion Global. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication:  October 4, 2021.


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Expert tips for prospective buyers looking to purchase a home in 2024.

By Josh Bozin
Fri, Apr 12, 2024 3 min

For aspiring homeowners, be it a first-time buyer, downsizer, or investor, picturing your idea of homeownership bliss is the easy part. But before deliberating on furniture choices or scouting for that perfect neighbourhood coffee, understanding your purchasing power stands out as the most important step in ensuring your success in homeownership.

And with the Australian property market gaining momentum in 2024, there’s never been a better time to come to grips with your financial options.

In 2023, amid the changing financial landscape that saw rising interest rates and the cost of living skyrocket, among other factors, the total amount borrowed for property purchases across Australia was estimated at $300.9 billion, a 12.7 percent decrease from the previous year, according to PEXA’s latest Mortgage Insights Report.

Each mainland state also experienced a decline in new lending, according to the report, with Victoria and New South Wales seeing the biggest drops to $84.1 billion and $109.5 billion, respectively.

While this trend reflects the repercussions of such financial hardships on the everyday Australian, John Morello, director and auctioneer at Jellis Craig, said we’re seeing renewed confidence in the property market during the first quarter of 2024, particularly in Melbourne.

“Auction clearance rates have started the year strongly and consumer sentiment is rising. This lift is driven by cooling inflation and an improved outlook on interest rates. At Jellis Craig, as with the rest of the market, we are experiencing an increase in volume of property compared to the same period in March last year (up 28% in 2024),” Mr Morello said.

“Melbourne’s property market, in particular, is showing its ongoing evolution and resilience.”

PEXA’s report revealed that, while borrowing saw a decrease in 2023 in Australia, Australians still invested $613.0 billion in property purchases in 2023. In 2024, purchasing confidence is only going up, as prospective first home buyers, seasoned downsizers, and savvy investors look to capitalise on a flood of new property hitting the market, coupled with the lowering of interest rates across the board.

“With more certainty in the economic outlook, along with an increase in volume of property available, we are seeing these factors translate to early signs of a boost in confidence in both buyers and sellers,” said Mr Morello.

“Further encouraging data shows that whilst there is more property available to purchase, more people are inspecting property, again indicating that demand has increased broadly across our marketplace.”

If you’re in the market for a new property, the biggest question you must ask yourself is how much house can I afford?

A great starting place is to speak with your mortgage broker or financial professional, who can guide you on your lending options. This is critical, as you need to know what your future repayment options might look like, and ultimately, what you will typically be able to afford.

A useful tool for judging whether you can afford a specific property is to factor in the 28/36 rule — a rough guide that suggests you should not spend more than 28 percent of your gross monthly income on housing, and no more than 36 percent on all debts. Another useful tool is the idea of a debt-to-income ratio (DTI); a formula whereby an individual can divide all of their monthly debt payments by gross monthly income to arrive at a number that one can measure as a way of managing monthly mortgage payments.

Mr Morello emphasised the need to understand affordability and what’s feasible for each individual when looking to make a purchase, no matter the budget, on a property in 2024.

“It’s pivotal to work out what you can afford. Get your finances in order. Consider all associated costs with buying, and research what concessions and grants are available,” said Mr Morello.

“It’s easy for individuals to begin the process today. Start actively searching potential properties on a weekly basis, and research areas you are interested in. Check weekly sales results, attend inspections and auctions, to get a feel for the process. Just remember, it’s important to be really comfortable in understanding your living expenses, and what the ongoing expenses will be once you have bought a property.

“For example, mortgage repayments, council rates, water, power, owners corp fees, insurances, maintenance costs; if you are buying as an investment, the Land Tax payable on that property which is an ongoing tax. There’s many factors to consider.”

To see what’s possible for your specific circumstances, visit our Finance Portal for specific tools, guides and tips—as well as our own mortgage calculator—to assist you on your property journey.



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This stylish family home combines a classic palette and finishes with a flexible floorplan

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