China topped the latest Global House Price Index from Knight Frank for the second quarter of 2019, while Australia lagged behind in last place.
China led the index for the first time since 2010 with annual growth of 10.9 per cent, followed by Malta up 10.8 per cent, the Czech Republic up 9.4 per cent, Luxemburg up 9.3 per cent, then Mexico and Hungary both up 9.2 per cent.
At the other end of the index, Australia recorded the worst performance where prices have fallen by -7.4 per cent, since tax measures were taken against overseas property investors. Finland was second bottom with prices down -2.6 per cent, while property values were down 0.8 per cent in Morocco and Italy. In Brazil and Switzerland prices have increased by just 0.2 per cent and 0.4 per cent in Poland.
Even the previously hot property market in Canada rose by only 0.5 per cent over the same 12-month period.
In addition to the strong growth seen in China, more countries saw residential property price rises year on year than at any time in the last decade, but the average rate of growth is slowing significantly, the latest global index shows.
The report says that the growth in China represents the index’s lowest ranking top performer since the first quarter of 2009. China led due to Slovenia and Latvia, last quarter’s frontrunners, slowing at a faster rate.
It also points out that the quarter also saw the highest percentage of countries register either flat or positive price growth year on year since 2009 at 93 per cent. More locations are registering annual price growth, but their average rate of growth is slowing.
In Europe, slower growth was also seen, but with some interesting trends. Austria with a rise of 7.3 per cent now outperforms Germany where prices increased 5 per cent, Portugal with a rise of 7.8 per cent is rising up the rankings, and Central and Eastern European countries continue to perform strongly with the Czech Republic up 9.4 per cent, Hungary up 9.2 per cent and Bulgaria up 7.3 per cent.
Although Australia was at the bottom of the index, with two interest rate cuts this year, new lending stimulus in place and prices bottoming out, Knight Frank expects Australia to rise up the rankings in the second half of 2019 as the property market turns the corner, led by stronger growth in Sydney.
KNIGHT FRANK GLOBAL HOUSE PRICE INDEX, Q2 2019 – TOP TEN
1 China 10.9 per cent
2 Malta 10.8 per cent
3 Czech Republic 9.4 per cent
4 Luxembourg 9.3 per cent
5 Mexico 9.2 per cent
6 Hungary 9.2 per cent
7 Chile 9.1 per cent
8 Slovenia 8.4 per cent
9 Taiwan 8.4 per cent
10 Portugal 7.8 per cent
KNIGHT FRANK GLOBAL HOUSE PRICE INDEX, Q2 2019 – BOTTOM TEN
47 Israel 1.1 per cent
48 United Kingdom 0.9 per cent
49 Canada 0.5 per cent
50 Poland 0.4 per cent %
51 Brazil 0.2 per cent
52 Switzerland 0.2 per cent
53 Morocco -0.8 per cent
54 Italy -0.8 per cent
55 Finland -2.6 per cent
56 Australia -7.4 per cent