Global real estate investment management firm, Knight Frank’s latest global house price index, shows the pace of house price growth slowed to 5.1% in the third quarter of 2017. That’s down from gains of 6.3% in the second quarter and around 5.6% in the third quarter of 2016.
The index, which includes data from Saudi Arabia, for the first time, shows residential property price growth was strongest in Iceland for a fourth straight quarter.
However, after posting a 23.2% year-on-year rose in residential real estate price in the second quarter, the pace of growth slowed to 20.4% in Q3.
Top performers lose steam
Along with Iceland’s slowdown, Hong Kong also experienced a slowdown in its rate of house price growth. Knight Frank’s index shows residential real estate prices were 17.2% higher in the third quarter of 2017, than a year earlier.
“Thirteen of the 15 strongest performing housing markets around the world registered a slowdown in their rate of annual growth in the year to September,” said Knight Frank’s international residential researcher, Kate Everett-Allen.
The other countries making up the top ten were:
- Czech Republic +13.2%YY.
- Malta +11.5%YY.
- Canada +11.4%.
- Turkey 11.1%.
- Australia +10.2%.
- Latvia +8.8%.
- India +8.7%YY.
- Bulgaria +8.6%.
UK growth slows, Greece posts first rise in 9 years
In the UK, residential real estate price growth slowed to 2.6% on the year in third quarter, from +2.8% in the second. That’s broadly in line with the market data regularly published and places the UK 42nd out of a table of 56 countries.
European house prices, meanwhile, held up relatively well. The average annual pace of property price growth across Europe, was 5.6% in the third quarter, compared with 2.3% three years earlier.
And, there was good news for Greece, where the average price of a residential property was up 0.9% from a year ago. That was the first annual increase there for nine years, Knight Frank’s data shows.