By David Fuller
Global property prices increased by an average of 5.6 percent in the year to June, new data reveals.
The latest Knight Frank Global House Price Index, which tracks house prices in 55 countries worldwide, found that 49 countries recorded flat or positive price growth in the 12 months to June 2017.
Iceland leads the index for the third consecutive quarter, with average prices jumping 23.2 percent in the past year. The sudden surge in interest Icelandic property led to a new law being introduced in January which requires those renting their homes for longer than 90 days — or generating a rental income of more than ISK 7,200 (US$9,500) per year — to obtain a special business licence.
Iceland has become increasingly popular with overseas investors since the country started being used as a filming location for his TV show Game of Thrones.
Hong Kong recorded the second highest property price growth over the past 12 months. Prices there grew by 21.1 percent over the past year, with strong demand and limited supply behind its strengthening prices.
While five of the top ten countries are based in Europe (Malta, Czech Republic, Estonia and Hungary join Iceland in the top ten), as a whole European property markets are not performing as well as they were.
In the first quarter of 2017, 20 European countries saw their overall market’s direction improve when compared with the previous quarter. However, in the second quarter of 2017 only nine fell into this bracket.
Poland, Greece and Ukraine were three of the six countries to see property prices fall in the year to June. The other three were Singapore, Morocco and Japan.
New Zealand was another market that has lost traction in the last year. While prices there still grew by a healthy 10.4 percent in the past year, New Zealand slipped from third position to tenth in the rankings, with growth over the past six months slowing to just 0.6 percent.
The world’s heavyweight in housing market terms, the US, saw average prices climb 5.8 pe
rcent over the 12-month period.
Top ten global property price rises
1. Iceland – 23.2 percent
2. Hong Kong – 21.1 percent
3. Malta – 14.6 percent
4. Canada – 14.2 percent
5. Czech Republic – 12.7 percent
6. Turkey – 12.7 percent
7. Estonia – 10.7 percent
8. Hungary – 10.5 percent
9. India – 10.5 Percent
10. New Zealand – 10.4 percent