Property prices have increased in 69 per cent of worldwide locations, says the latest Knight Frank Global Housing Price Index. This is a rise of 19 per cent compared to 2009.
Asia – especially Singapore, Hong Kong, and China – is leading the property price boom. China so much so that the government has recently had to introduce cooling measures like ordering banks to enforce a 30 per cent deposit on home loans and halting lending for buyers of third properties.
Asia’s economies have grown alongside their property prices. According the IMF’s projected growth rates, China will grow 10.5 per cent in 2010, India 9.7 per cent, Indonesia 6 per cent, and Japan 2.8 per cent.
“Each quarter we are presented with further evidence that the impact of the global recession on the world’s housing markets is diminishing,” said Liam Bailey, head of residential research at Knight Frank. “A slight convergence is occurring with the disparity between the top and bottom of the table being less pronounced than a year earlier. On the one hand, government intervention, particularly in the heated Asian economies, is starting to have the desired cooling effect as indicated by the latest quarterly results.”
“On the other hand, economic stimulus measures put in place by many western governments such as ultra-low interest rates, first time buyer concessions and targeted support for banks have encouraged house buyers and this increase in demand has helped push prices higher, albeit moderately so,” he added.
Bailey also said that sub-divisions were beginning to emerge in Asia, where the housing markets of Singapore, China, and Hong King are far outperforming those of India, Indonesia, and Japan.
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