Global residential real estate price growth slows in Q3

Global residential real estate price growth slows in Q3

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.

By Ilona Billington
Ilona is a freelance writer and editor with over 15 years experience reporting and writing about UK and European economics, real estate, financial markets and central banks.

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