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News from Knight Frank Hong Kong

Knight Frank Launches Global House Price Index for Q4 2016

30 March 2017

 Knight Frank today launches the Global House Price Index for Q4 2016. The index monitors and compares the performance of mainstream residential markets in 55 countries across the world, 11 of which are from Asia-Pacific. Globally, the index grew by 6.0% in 2016, up from 4.1% in 2015. It is the highest annual rate recorded since the first quarter of 2014.


Results for Q4 2016:
 
  • Iceland leads the ranking for the first time since the index began in 2006. 
  • China jumped from the 43rd position in the rankings in 2015 to the 7th in 2016 with average prices now increasing by 10.8% per annum according to the country’s National Bureau of Statistics. 
  • Ukraine, Taiwan, Singapore and Cyprus continue to be characterised by weak growth either due to ongoing geopolitical crises, economic fragility or cooling measures which are artificially restraining growth.
  • Long-term frontrunners, Turkey (12.2%) and Sweden (6.1%) both saw their rate of annual growth decline.
 
Nicholas Holt, Head of Research for Asia-Pacific, Knight Frank Asia-Pacific, says, “New Zealand, the strongest performing market in the Asia-Pacific region, is seeing price growth moderate after a number of quarters of upwards momentum. However, with the market still suffering from supply shortages, we believe overall growth will remain positive throughout the year.
 
“In Asia, the most notable market was Singapore where the surprise slight easing of certain cooling measures is likely to spur some additional interest in the market. Still sitting close to the bottom of the chart, many buyers in Singapore are still constrained by the Additional Buyer's Stamp Duty and lending restrictions.”
 
David Ji, Director, Head of Research & Consultancy, Greater China, says “the Hong Kong government has determined to increase housing supply in the coming decade, as repeatedly affirmed by The Budget and the Policy Address 2017-2018. While abundant supply will suppress price growth, high land prices and strong housing demand will lend support to prices. We expect a mild home price increase of 5% in 2017. 
 
In Mainland China, David expects prime residential sales to slow down in the next 12 months with the continual implementation of cooling measures. However, with stable housing demand, the upward trend in prime residential prices will continue on the Mainland, but at a slower pace.”