D_Property

House prices worldwide increased by 4.6% in 2017, led by Iceland and Hong Kong, but their rate of growth has slowed while European housing markets are rising up the rankings, the latest global index shows.

Overall some 85% of the 59 countries tracked by the Knight Frank global house price index saw mainstream values rise and seven European countries now sit within the top 10 while Russia, Peru and Ukraine registered the weakest growth in 2017.

‘The latest house price rankings provide a glimpse as to where the world’s housing markets are in relation to their property market cycles, as the era of economic stimulus comes to a close and rate rises occupy the minds of policymakers in several key western markets,’ said Kate Everett-Allen, head of international residential research at Knight Frank.

She explained that while 2017’s growth of 4.6% was lower than 2016’s 5.3%, it was still a reflection of steady growth, tied primarily to the fact the global economy registered growth of 3.7% in 2017.

‘That is not to say there aren’t headwinds. Rising interest rates in the US, UK, and Canada as well as the withdrawal of stimulus is influencing buyer sentiment, and with over 13 countries pegged to the US dollar, further rate rises by the Federal Reserve will have repercussions beyond US shores,’ she pointed out.

Indeed, the index’s more moderate rate of growth is reflected throughout the rankings. The gap between the strongest and weakest performing housing market has narrowed from 27 percentage points to 20.

Iceland and Hong Kong still occupy first and second position but their rates of annual growth have slipped from 20% to 15% and from 18% to 14% respectively since the previous quarter. Mirroring a trend seen in the prime residential markets, European countries are rising up the rankings.

The Czech Republic and Ireland were in equal third with price growth of 12.3%, followed by Turkey at 11.2% and Serbia at 11%, Hungary at 10%, Latvia at 9.5%, Bulgaria at 9% and Malta at 8.8%.

The UK is ranked 24th with annual growth of 5.2%, Portugal at 31 with price growth of 4.5%, France at 35 with 3.9%, Germany at 38 with a rise of 3.6%, Spain at 43 with 3.1% and Italy close to the bottom at 53 with a fall of 0.8%.

At the bottom is Ukraine where prices fell by 5.1%, while in Peru they fell by 4.2%, in Russia they were down 3%, in Saudi Arabia down 2.2%, in Finland down 1.5% and in Poland there was a fall of 0.9%.
http://www.propertywire.com
In terms of the world’s largest economies, the US with growth of 6.3% has overtaken China at 5.8%. The index report says that in China, although tighter capital controls are limiting cross border flows, policy levers at home are having some success stemming its tide into domestic markets.

The strong performance of the US and Canada at 8.9% means North America outpaced all other world regions in 2017, recording average price growth of 7.5%. ‘With a raft of new measures announced to curb Vancouver’s price Inflation and further rate rises mooted we may see Canada shift down the rankings during 2018,’ said Everett-Allen

For several years, Australia and New Zealand’s markets moved largely in tandem, but the index shows that they have now diverged. Australia sits in 12th place with growth of 8.3% year on year, whilst New Zealand, at 3.2%, has sunk to 42nd place, which Everett-Allen suggest that this is probably influenced by plans to halt the purchase of existing homes by foreign buyers.

‘With 2018 set to see the normalisation of monetary policy, albeit at a gradual rate, it’s likely that the index’s performance may moderate further in the coming months,’ she added.

Source: www.propertywire.com

April 17, 2018
cash-1342228_1920(1)

Global mainstream house prices increased by 4.6% in 2017, latest index shows

House prices worldwide increased by 4.6% in 2017, led by Iceland and Hong Kong, but their rate of growth has slowed while European housing markets are rising up the rankings, the latest global index shows. Overall some 85% of the 59 countries tracked by the Knight Frank global house price index saw mainstream values rise and seven European countries now sit within the top 10 while Russia, Peru and Ukraine registered the weakest growth in 2017. ‘The latest house price rankings provide a glimpse as to where the world’s housing markets are in relation to their property market cycles, as the era of economic stimulus comes to a close and rate rises occupy the minds of…
April 12, 2018
house-1407562_1920

Mortgage market continues to favour those with a larger deposit

2018 has started relatively well for those taking their first step onto the property ladder. Average mortgage interest rates continue to fall and recently released government statistics have shown that various schemes including HTB are performing well. However, the market remains skewed and still overwhelmingly favours those with at least a 25% deposit. The latest findings from the quarterly AmTrust Mortgage Loan to Value (LTV) Tracker show that those first-timers with only a 5% deposit are still having to pay almost two-thirds more per month in mortgage payments than those with a 25% deposit. This has been a constant over the three years that the Tracker has run. Chancellor Philip Hammond, in last month’s Spring Statement,…
April 9, 2018
houses-1150022_1920

Average houses prices rise by 1.5% in UK in March to new record high

The average price of a home in the UK reached £227,871 in March, a record high, having increased by 1.5% month on month, the latest index data shows. Prices are now 2.7% higher than in March 2017, up from 1.8% annual growth recorded in February. It is the highest recorded price for the index published by lender the Halifax. However, Russell Galley, Halifax managing director, pointed out that while mortgage are at their most affordable for years, activity levels, like house price growth, have softened compared with a year ago. Mortgage approvals are down compared to 12 months ago, whilst home sales have remained flat in the early months of the year. ‘This lack of direction…
April 5, 2018
oxford-1378641_1920

UK landlords ‘remain optimistic in spite of challenges’

Despite the uncertainty of Brexit and increasing tax burdens for landlords, buy-to-let (BTL) investors remain largely optimistic about the prospects for the market in the year ahead. In its annual ‘BTL barometer’, which explores the current and future sentiment of professional landlords, Shawbrook Bank finds two thirds (65%) of BTL investors are confident about the performance of their property portfolio in 2018. Just 14% say they are concerned. Good tenant demand and high yields appear to be driving feelings of optimism amongst this cohort of property investors, with one in five (21%) experiencing an increase in tenant demand in the 12 months to 2018. Although landlords are optimistic, they are also realistic, understanding they will be…
April 2, 2018
london-1932125_1920

Mortgage lending growth set to continue in UK in 2018 and 2019 but faces challenges

Growth in mortgage lending in the UK is forecast to rise in 2018 for an eighth year in a row to reach its highest level since 2007 and to continue doing so into 2019 despite Brexit uncertainties. However, despite the best performance for a decade, the mortgage market continues to be challenged by a combination of a shortage of properties, very low levels of turnover and obstacles to both first time buyers and second steppers, according to the fifth annual market review from the Intermediary Mortgage Lenders Association (IMLA). The report suggests that gross mortgage lending will reach £265 billion with net mortgage lending of £47 billion and remortgage activity will continue to be more buoyant…
March 27, 2018
window-1800575_1920

Northern cities continue to lead price growth in the UK

House price growth in British cities continues to be led by locations in the north with five recording annual rises of over 7%, the latest index shows. Overall prices in key cities have increased by 5.2% in the 12 months to February 2017 but the reverse is happening in London with value up just 1% year on year and negative growth in 42% of the capital’s postcodes. Edinburgh, Liverpool, Leicester, Birmingham and Manchester lead the growth with annual price rises of 8%, 7.8%, 7.7%, 7.7% and 7.1% respectively with Leeds not far behind at 6.9%, according to the latest index from Hometrack. Overall price growth in the 20 cities covered by the index is still above…
Restricted Content
The contents of this website are intended only for investors from certain qualifying classes (“High Net Worth Individuals” and “Self-Certified Sophisticated Investors”). To access the full contents of the site you must first register in one of these categories.
Please confirm that you are a suitable investor before proceeding. If you are unsure whether you meet the specific criteria or not, you can check the definitions here.
Will be back soon