Knight Frank Global House Price Index – Quarter 1 2009

Knight Frank Global House Price Index – Quarter 1 2009
By: Knight Frank
 
June 4, 2009 - PRLog -- Key highlights:

1)Global housing markets continue to struggle against a backcloth of economic stagnation or decline and rising unemployment

2)Israel was the top performer over the 12 month period ending Q1 2009 recording growth of 10.9%, followed by the Czech Republic at 9.9%.  The worst performers were Dubai and Singapore who recorded falls in average prices of, respectively, 32% and 23%

3)On a quarterly basis, the most dramatic fall in prices were recorded by Dubai (-40%) and Singapore (-16.2%).  The best performing markets were Thailand with a 2.7% uplift in values, Israel (+2.6%) and Switzerland (+2.1%)

4)Of the sources used in this index, 14 (equating to 30% of the total index) had not reported Q1 data at the time of writing this report

5)The shorter term economic outlook suggests that the world’s housing markets are likely to continue to suffer for the remainder of 2009

Nick Barnes, head of international residential research, Knight Frank, said:

“The world’s housing markets remain under intense pressure with little real evidence of any of the hoped for “green shoots” and even the improvement in performance shown in some countries in the last quarter may yet turn out to be a false dawn according to some commentators.  Recent projections from the Organisation for Economic Co-Operation and Development (OECD) do little to promote a more optimistic viewpoint – GDP growth is forecast to drop by an average 4.3% in the OECD area in 2009 while by the end of 2010 unemployment rates in many countries will reach double figures for the first time since the early 1990s.  

“The inescapable trend is that the worst and most widespread economic recession since the 1930s continues to batter housing markets across the globe.  Rising unemployment and concern among those still in jobs, added to constrained credit conditions, means that buyer demand for housing remains suppressed and confidence is  low in most markets which is inevitably having a negative impact on house prices. There is sporadic evidence of buyers snapping up relative bargains, however of those buyers in a position to move, many are still waiting for clearer signs that markets are approaching the bottom of the cycle.  Moreover, in a falling market, sellers are usually forced to a greater or lesser extent which means that opportunities to buy are greatly reduced and transaction volumes correspondingly low.  

“Against this backdrop, it is perhaps unsurprising that of the official sources used in the Knight Frank Global House Price Index, 14 (equating to 30% of the total index) had not reported Q1 data at the time of writing this report.  We can only surmise that the data collection bodies have either been unable or unwilling to publish the data to timetable – perhaps a reflection of the ailing health of their respective residential property markets?  

“Of the first quarter data which we have received, Israel was the top performer over the 12 month period ending Q1 2009 recording growth of 10.9%, followed by the Czech Republic at 9.9%.  The better performing markets tend to be smaller and with fewer structural imbalances.  The worst performers were Dubai and Singapore who recorded a fall in average prices over the period of, respectively, 32% and 23%.while a further five countries also returned double digit declines.  

“The latest data suggest some easing in the plight of markets.  On a quarterly basis, 48% of the countries from whom we received Q1 data reported a drop in prices compared to 88% in our Q4 2008 index.  On an annualised basis, 48% of countries also showed a fall in values compared to 77% in Q4.  Given the high proportion of “absentees” for Q1, however, it would be potentially misleading to jump to too many hasty conclusions, although over half had shown annual and / or quarterly price falls at the last time of reporting.  Nonetheless, the shorter term future direction of most underlying economies suggests that the world’s residential markets are likely to continue to suffer for some while.”

To see the entire article please click the below link:
http://www.knightfrank.com.hk/corp/press_release/2009/pre...

# # #

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 196 offices, in 38 countries, across six continents. More than 6,770 professionals handle in excess of US$700 billion (almost £355 billion) worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants.

Knight Frank has a strong presence in the Greater China property markets, with offices in Hong Kong, Beijing, Shanghai, Guangzhou and Macau, offering high quality professional advice and solutions across a comprehensive portfolio of property services. For further information about the Company, please visit www.knightfrank.com.
End
Source:Knight Frank
Email:***@hk.knightfrank.com Email Verified
Tags:Global Property, Hong Kong Property, Property Market, House Price, Knight Frank
Industry:Property
Account Email Address Verified     Disclaimer     Report Abuse
Trending
Most Viewed
Daily News



Like PRLog?
9K2K1K
Click to Share