According to the latest report released by Knight Frank, Global house prices are mirroring the upturn in the global economy. The Global House Price Index rose by 8.4% in 2013 compared with 4.6% in 2012.
Highlights for Q4 2013:
• The Knight Frank Global House Price Index rose by 8.4% in 2013 and by 1.2% in the final quarter.
• Dubai recorded the largest annual rise in mainstream property prices, but prices remain 25% below their 2008 peak. China came second, experiencing price growth of 27.5% in 2013.
• Ukraine, Croatia and Greece were the weakest-performing housing markets in 2013.
• In 2013, house prices rose in 39 countries compared with 27 in 2012.
• European countries still dominate the bottom of the rankings but in most cases their rate of decline slowed in 2013.
The effect of various cooling measures on Hong Kong’s residential market started to grow apparent, with Global House Price Index in Hong Kong dipping 0.2% in Q4 2013, compared with a quarter ago. On a year-on-year basis, the index still grew 7.7%, but this rate is already much slower compared with previous years when no cooling measures were imposed. Residential prices dipped another 2% so far in 2014. Thomas Lam, Director and Head of Research & Consultancy, Greater China at Knight Frank expects prices to drop 10-15% over the year.
Global House Price Index Q4 2013