House price growth among fastest in world

Global property prices are rising at the fastest rate since 2006, with Australia ranking fourth for growth in the past six months.

Australia’s property market has climbed faster than most other countries int he past six months.​

Australia is among the fastest rising property markets in the world as the post-pandemic bounce is reflected internationally.

Residential prices are rising across the globe at the fastest rate since 2006, according to international real estate firm Knight Frank’s Global House Price Index for the first quarter of 2021.

The average benchmark of the 56 countries and territories surveyed was a 7.3 per cent gain in prices on an annualised rate to March, with 13 countries recording double digit change.

Australia’s market rose 8.7 per cent in the past six months, ranking it the fourth for gains in the world. Knight Frank’s Head of Residential Research Australia, Michelle Ciesielski said the local market had proven “particularly resilient” despite a global pandemic, fairing much better than many other countries and territories which experienced stricter lockdowns.

“In recent weeks, we’ve seen some stability in Australia’s mainstream property market with many buyers reaching their borrowing capacity under the responsible lending regimen and simply being priced out once again from the major capital cities,” Ms Ciesielski said. “Although we need to be mindful we’re only days into the winter season, there is enough fuel for house price growth to be fired up again in the spring selling season by investors returning to the market, encouraged by low mortgage lending rates, three more months of savings and a strengthening economy.”

The only countries in the six-month period to outpace Australia were Lithuania (up 23.4 per cent), New Zealand (up 15.3 per cent), and Turkey (up 12.8 per cent).

On an annualised basis, Australia ranks 18th for growth at 8.3 per cent, on par with Denmark.

“The last time Australia’s mainstream market saw double-digit growth was in September 2017 with 10.2 per cent,” Ms Ciesielski said.

Gains were not seen everywhere, however, with Italy (up 1.6 per cent), India (down 1.6 per cent) and Spain (down 1.8 per cent).