Australia defies global trend in Global House Price Index

Knight Frank’s Global House Price Index: Q3 2017, which tracks housing market performance across 56 countries worldwide, has found that Australia defied the global trend by moving up to 7th position, maintaining 10.2 percent growth over the past quarter. They move from 11th in the last quarter, also with a growth of 10.2 percent.

Overall, global house prices have increased by 5.1 percent in the year to September 2017. This is down from 6.3 percent growth the previous quarter.

Knight Frank Australia’s head of residential research Michelle Ciesielski noted Australia’s strengthened position. “The Global House Price Index has weakened, and now represents the lowest increase since the start of 2016. However, Australia’s annual price growth has been maintained at 10.2% in Q3 2017,” she said.

“Interestingly, with weaker growth across the global marketplace, our ranking has moved up four spots to seventh place – we are also one of just seven cities tracked globally still performing with double-digit growth.

Sarah Harding, Head of Residential at Knight Frank Australia said that other capitals are making up for the Sydney drop. “Although some of the heat has been taken out of the Sydney residential market of late, Melbourne, Hobart and Canberra are thriving – driving up total annual growth,” Harding said.“Additionally, the worst appears to be behind Perth’s residential markets and this is also contributing positively to the overall Australian performance.

“As investors find it increasingly harder to obtain finance, we’re experiencing more enquiries from owner-occupiers, including those looking to downsize, and we’re starting to see the return of first-time buyers to the market.”

Source: Knight Frank