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AUSTRALIA IN GLOBAL TOP 10 FOR PRICE GROWTH

Wednesday June 18th, 2014

Property advisory firm Knight Frank has released analysis, placing Australia in the top 10 nations globally for real estate price growth.

The Knight Frank Global House Price Index for the first quarter of 2014 sees the nation at number seven on a ranking of countries with the biggest price gains.

Michelle Ciesielski, an associate director at Knight Frank, says the result highlights a return to form for Australia and other markets.

“The turnaround in the US, Australian and Icelandic housing markets is evident with three countries now appearing in the top 10 rankings for annual price growth alongside key emerging markets such as China, Turkey and Brazil.”

Dubai topped the annual rankings, but prices rose by only 3.4 per cent in the first quarter, compared to a 9.2 per cent jump over the same period in 2013.

Croatia, Cyprus and Greece were the weakest-performing housing markets in the 12 months to March 2014.

Although the index saw slower growth in the first quarter of 2014 compared to last quarter, it still recorded annual growth of 7.1 per cent.

Ciesielski says their outlook remains bullish for future results.

“We expect to see the index’s performance strengthen again in the second quarter,” she says.

“All eyes will remain on central banks, in particular the Federal Reserve, the Bank of England and the European Central Bank.”

And she says the pace of monetary policy change will be the determining factor.

“The issue is not when interest rates rise but the speed and extent to which they do.”

Source: Australian Property Monitors

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