According to the report, residential prices rose at an annual rate change of 5.6 percent on average in 2020, compared to 5.3 percent in 2019.
The Global House Price Index published by Knight Frank tracked the movement in mainstream residential prices across more than 55 countries and territories worldwide in the year to Q4 2020. Some 89% of countries and territories saw prices increase in 2020, with several emerging markets performing strongly including Turkey which leads the index for the fourth consecutive quarter. Several markets including New Zealand (19%), Russia (14%) the US (10%), Canada and the UK (both 9%) accelerated up the rankings in the last three months
Asia Pacific’s performance remains surprisingly anaemic given its relatively efficient handling of the pandemic. Although New Zealand sits in second place, the region’s next highest ranking is Japan (5%) in 27th place. Housing demand and hence price growth remains city-focused not countrywide in Asia. Hong Kong and Malaysia both saw annual price growth slip into negative territory and even Singapore’s rate of growth was muted at 2.5%.
But not all markets are on the up, Europe is one world region where a gulf is emerging. Austria (10%), Germany (8%) and France (6%) are moving ahead of Italy (1%) and Spain (-2%). Strict lockdowns, rising unemployment and a surplus of supply in some areas is leading to weaker price inflation in these Southern European economies.