Prices in many of the property markets around the world continued to surge during Q3, lead by most of Europe, North America, and some parts of the Asia-Pacific region.
According to the latest research from the Global Propety Guide website, the five strongest housing markets in its global survey were Qatar (+16.42 percent year-on-year), New Zealand (+14.86 percent), Hong Kong (+12.64 percent), and two European countries – Sweden (+11.26 percent) and Iceland (+9.24 percent).
The biggest year-on-year house-price declines were in UAE (-14.1 percent), Russia (-13.38 percent) and Egypt (-12.48 percent).
During the year ending Q3 2015 house prices rose in 28 of the 41 world’s housing markets which have so far published housing statistics, using inflation-adjusted figures. The more upbeat nominal figures, more familiar to the public, showed house price rises in 30 countries and declines in 11 countries.
During Q3, 22 housing markets showed stronger upward momentum while 19 housing markets showed weaker momentum. Momentum is a measure of the ‘change in the change’; simply put, momentum has increased if a property market has risen faster this year than last (or fallen less).
Most of Asia saw strong house price rises. House prices rose during the year to Q3 2015 in six out of ten Asian housing markets for which figures are available, and seven showed an improved performance on the previous year.
Hong Kong had the highest housing price rises in Asia and was the third strongest housing market in the global survey, with residential property prices surging by 12.64 percent during the year to Q3 2015, a sharp improvement from the 1.76 percent year-on-year increase during the previous year. Housing prices rose by 1.12 percent quarter-on-quarter during the latest quarter.
Japan‘s house price rises continued to be spectacular with the average price of existing condominiums in Tokyo rising by 8.97 percent during the year to Q3, up from the meagre growth of 0.39 percent during the previous year. Residential property prices rose by 1.98 percent quarter-on-quarter during Q3 2015.
The Philippines’ housing market also remained strong. The average price of a three-bedroom condominium units in Makati CBD rose by 5.41 percent during the year to Q3 2015 compared with 3.58 percent during the year to Q3 2014. Housing prices increased 1.27 percent quarter-on-quarter during the latest quarter.
China‘s housing market made a strong comeback with the price index of second-hand houses in Shanghai rising by 5.07 percent during the year to Q3 2015 in contrast to a year-on-year decline of 0.45 percent the previous year. During the latest quarter house prices in Shanghai rose by 2.21 percent.
The Global Property Guide reported that Thailand’s housing prices rose by 3.4 percent during the year to Q3 2015, a slight improvement from the annual growth of 2.15 percent during the previous year. House prices increased 3.15 percent during the latest quarter. Here it is worth noting that the Global Property Guide takes its data for the entire Thailand market from the Bank of Thailand’s data for single detached houses, and single detached houses with land.
South Korea‘s nationwide housing purchase price index rose by 3.4 percent during the year to Q3 2015, amidst low interest rates and relaxed mortgage lending rules, an improvement from the annual rise of 2.15 percent during the year to Q3 2014 and the biggest year-on-year rise in the past seven years. House prices increased by 0.72 percent quarter-on-quarter during the latest quarter.
That said, half of Asia continued to lose steam. House prices fell in four of the ten Asian markets for which figures were available in Q3 2015.
Singapore‘s housing market continues to struggle with house prices falling by 3.62 percent during the year to Q3 2015, its eighth consecutive quarter of house price falls. House prices fell by 1.06 percent quarter-on-quarter during the latest quarter.
Taiwan‘s nationwide house prices dropped 2.95 percent during the year to Q3 2015, the second consecutive quarter of year-on-year price falls since Q2 2009, due to the government’s recent housing market cooling measures. This was in sharp contrast with the increase of 3.42 percent year-on-year to Q3 2014. House prices dropped 2.4 percent during Q3 2015.
Indonesia’s housing market remained weak with residential prices in the country’s 14 largest cities falling by 1.49 percent during the year to Q3 2015, the third consecutive quarter of year-on-year price falls since Q3 2012 and in contrast with the annual rise of 2.77 percent a year earlier. House prices fell by 0.67 percent during the latest quarter.
Vietnam‘s housing market has been stabilising with house prices falling by just 0.06 percent year-on-year to Q3 2015. House prices were unchanged during the latest quarter.
