Knight Frank’s Global House Price Index has revealed that across the 55 countries tracked, house prices increased by 5.6% on average in the year to June 2017.

Weighted by purchasing power parity (PPP), the results were down from 6.5% recorded last quarter.

One of the highlights shows that Iceland leads the index for the third consecutive quarter, with average prices jumping 23.2% in the year to June 2017.

New Zealand tumbled in the rankings from third position to tenth as annual price growth moderated to 10.4%. 

China’s average price growth experienced a marginal dip to 9.6% in the 12 months to June 2017.

“Hong King’s stellar performance is perhaps counterintuitive given three rate rises in the last year,” reported partner and international residential research expert at Knight Frank, Kate Everett-Allen. “Strong demand and limited supply are behind its strengthening prices.”

Five of the top 10 rankings are occupied by European countries this quarter.