Knight Frank’s Global House Price Index for the fourth quarter of 2021 indicates Australia had the highest rate of annual house price growth in the world over the course of the year.
Across the globe, house prices increased by an average of 10.3 percent in 2021. Australia’s growth is recorded at 17.5 percent. Turkey recorded a growth rate of 59 percent in nominal terms for 2021, but if you are to deduct Turkish inflation of 36 percent at the end of 2021, Australia registered the highest growth spike.
“With compounded savings throughout the pandemic in what is still a relatively low interest rate environment, the stability of residential property as safe haven continues to appeal and is one of the reasons why Australia has seen significant growth in values over the past year,” says Knight Frank Australia Head of Residential Research, Michelle Ciesielski.
“We’ve now reached a point where the Australian housing market has become fatigued after riding significant growth in values on the back of an economic rebound, and is now grappling again with global uncertainty, a natural disaster and an upcoming federal election.
“We can’t ignore the fact that we are facing a rental crisis in our cities and regional areas of Australia, with delayed construction in what has already been a diminishing pipeline of newly built homes, a lower number of local and international investors adding to the rental pool, and a likely increase in the skilled migrant population who also increase the demand for rental properties.
“So despite the economic headwinds on the horizon, the current imbalance between demand and supply in Australia’s mainstream residential markets for at least the next three years, could result in further growth in prices of up to 8 percent by the year’s end.”
Whether tracking nominal or real prices the top five performers remain the same, their order simply shifts, these include Turkey, New Zealand, Czech Republic, Slovakia and Australia.
To read the report in full, click here.
Image: Supplied
