Global house price growth 'to slow speed «

08.12.2010 21:00
Real Estate Market Analysis | Global house price growth In III quarter of this year more than half the countries in the world prices were lower than in the corresponding period of 2009.

According to global real estate price index compiled by consulting firm Knight Frank, for a specified period, prices rose by an average of 3,1%. The lead on this indicator Asia-Pacific region with the figure of 9,9%, the worst results in Europe - 0,8%.
Although the dynamics of price growth in the third quarter shows much better results than in the corresponding period the previous year, when growth stood at -6.2% compared with the second quarter (4.3%) indicators have deteriorated. This is mainly due to the fact that a growing number of countries where there is a fall in prices. Fourteen states, mostly European, have faced this problem for the first time after several months of steady increase in the cost of real estate.

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Liam Bailey, head of research at Knight Frank, argues that the positive aspects, however, is: for the first time since 2008, price increases observed in all six regions of the world. In the Asia-Pacific region, their growth was 9,9% in the Middle East - 5,1%, in North America - 4,2%, in South America - 3,5%, in Africa - 3% in Europe - 0,8%.

However, according to Bailey, these figures do not reflect the full picture. About 30% of the countries who demonstrated good performance in early 2010, in III quarter has shown a recession. This applies, above all, European countries: Greece, Iceland, Netherlands, Norway, Portugal, Slovenia and the UK. Also on the list are China, Canada, Colombia, Dubai, New Zealand, South Africa and Taiwan, according to NuWireInvestor.

In Latvia, the situation in the real estate market is changing more rapidly than anywhere else: a year ago for the parameter in question, it was among the laggards, and in the III quarter of this year, prices here were already 26% higher than in the corresponding period last year.

Finally, the unsuccessful attempts by the authorities "cool" Asian real estate market. In Hong Kong, Singapore and China, the rise in prices has been contained. In the Middle Kingdom all efforts will now focus on increasing the volume of deals in the sector for affordable housing. To this end, the Government will provide support to developers.
Content tags: Overseas property
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