Singapore drops to 9th place in Knight Frank house price index

Singapore slipped four notches to rank No 9 on Knight Frank’s latest global house price index largely due to regulatory measures and global economic uncertainties.

Annual price growth in Singapore, which ranked No 5 on the list in the March quarter, stood at 6.7 per cent in the second quarter of the year, down from 37 per cent a year earlier.

Knight Frank, which concluded the global housing market is at its weakest since 2009, said similar patterns are emerging in India and China, which recorded quarterly price falls of 1.7 per cent and 0.1 per cent respectively.

“There are clear signs that Asian policy measures, aimed at cooling asset price growth are having some success,” the report said.

Despite these more muted results, Asia continues to be the top-performing continent in terms of house price inflation – a position it has held for seven consecutive quarters.

Headed by Hong Kong, where price growth rose 26.5 per cent in the last 12 months, Asia continued to outperform all regions with prices up by an average of 8 per cent over the past year. India came in second at 21.3 per cent, followed by Taiwan at 12.3 per cent.

Overall, housing prices declined in 23 of the 50 countries monitored by the index. North America and Europe remain the weakest performing world regions with prices declining by 0.9 per cent and 0.1 per cent respectively in the last 12 months.

Worldwide, mainstream house prices marginally avoided falling into negative territory with prices rising on average by 0.1 per cent in the three months to June and by 1.7 per cent over a 12-month period.

Source : Today –  2 Sep 2011

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