Source: Yahoo7! News
While many local experts believe Australia’s property market is overinflated, new research shows that we barely make a top 10 list of countries with the highest house price increases over the past decade.
Japan recorded the biggest dive in house prices with a 30 per cent fall, while house prices in Germany were down 17 per cent and the United States finished the decade with a 2 per cent drop.
According to the study, Hong Kong experienced the largest rise in house prices in the last year, with the average property rising 14 per cent. During the same period Australia’s house prices slumped, with the average property shedding almost 6% of its value.
While many local experts believe Australia’s property market is overinflated, new research shows that we barely make a top 10 list of countries with the highest house price increases over the past decade.
The study, conducted by Lloyds TSB for their International Global Housing Market Review, found that emerging economies accounted for four of the six top performing housing markets since 2001.
Leading the charge was booming India which saw house prices rise by 284 per cent over the past 10 years. Russia also clocked an impressive house price increase of 209 % over the past decade.
Australia had the ninth fastest growing house prices over the same period, with increases of 76 per cent between 2001 and 2011.
At the other end of the scale, Germany, Japan and the United States all suffered house price declines over the period the data covers. Key drivers of the global economy, these three countries are all members of the G8 which includes the world’s eight largest economies.
Global real house price % performance, 2011 Q3 - 2011 Q3
Japan recorded the biggest dive in house prices with a 30 per cent fall, while house prices in Germany were down 17 per cent and the United States finished the decade with a 2 per cent drop.
According to the study, Hong Kong experienced the largest rise in house prices in the last year, with the average property rising 14 per cent. During the same period Australia’s house prices slumped, with the average property shedding almost 6% of its value.
What of booming China? The emerging giant only managed to rank 14th among the fastest growing housing markets in the world with a 47% per cent growth rate since 2001. Last year house prices in China continued to climb however, rising almost 4 per cent.
Other major findings of the research include:- Unsurprisingly, housing markets have typically risen fastest in countries with the fasted growing economies. On average, the countries with the biggest rises in house prices since 2001 have seen GDP increase by more than 100 per cent
- Countries that saw the biggest rises in pre-crisis times fell the hardest after the GFC smashed their economies.
- House prices within countries that form part of the Euro have climbed an average of 23 per cent since 2001. France saw the largest increase with 82 per, Belgium rose 69 per cent, Spain 26 per cent and Italy was up 31 per cent.
