Global housing market growth sluggish

Global home prices climbed only 2.8 percent last year, as more markets saw negative growth in the fourth quarter, according to the Global House Price Index 4Q 2010 by global real estate agent Knight Frank.

Asia Pacific recorded the highest price increases at 7.5 percent per annum, followed by the Middle East at 5.3 percent and South America at 3.8 percent.

However, 41 percent of the total markets surveyed recorded negative growth in the fourth quarter, compared with 35 percent in Q3 and 31 percent in Q2.

Liam Bailey, Head of Residential Research at Knight Frank, said that more markets in the US and Europe demonstrated weakness in the second half of 2010, after a “brief revival” in the previous year.

“The key trend at play in the global market is the unwinding of the stimulus packages put forward in 2009 in Europe, North America and Asia-Pacific,” he said.

“This trend is being reinforced by weaker results from Asia-Pacific, with India, Taiwan and Japan all recording negative price growth in the second half of 2010.”

Meanwhile, Hong Kong saw the fastest growth in the price index at 20.1 percent. This was mainly attributed to the government’s cooling measures to curb property prices.

Source : PropertyGuru – 8 Apr 2011

Join The Discussion

Compare listings