Global house prices rose 5.3% on average in the 12 months to September 2016, with Turkey, New Zealand and Iceland recording the biggest increases over the past year, a new global survey has revealed.
Once again, Turkey topped Knight Frank’s Global House Price Index, outperforming other countries for the fifth consecutive quarter, with prices increasing 13.9% year-on-year in Q3.
But compared with the second quarter, the average price in Turkey only increased 3.5%. The slower pace is likely to cost that country the top spot next quarter, giving way to New Zealand or Iceland, with annual growth of 13.5% and 12.9% respectively.
“Political and economic volatility, partly due to currency and security concerns, have cooled investor interest in Turkey,” said Knight Frank’s Kate Everett-Allen, the author of the report.
In Q3, 9% of the 55 countries monitored recorded double-digit annual price growth, including Turkey (13.9%), New Zealand (13.5%), Iceland (12.9%), Canada (11.7%) and Lithuania (10%).
The property markets in the U.S. and U.K. have remained broadly resilient, despite greater political and economic uncertainties following the Presidential and Brexit votes.
The expected slowdown in US house prices in the run-up to the Presidential election failed to materialise. The rise in September of 0.8% month-on-month was the largest monthly rise since August 2013 contributing to an annual increase of 5.5%. September also marked a new high for nominal US house prices which have now exceeded their previous peak recorded in July 2006.
UK house prices have remained firm, posting an annual increase of 5.5%, underpinned by a lack of supply and ultra-low mortgage rates.
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New Zealand 13.5%
Hong Kong -5.5%