Global House prices slow in first quarter 2014
Knight Frank’s Global House Price Index has risen for eight consecutive quarters but the rate of price growth slowed in the first three months of 2014.
Although the index saw slower growth in the first quarter of 2014 – rising by 0.6% compared to 1.2% last quarter – it still recorded annual growth of 7.1%
The final quarter of the year often sees a peak in sales transactions as buyers rush to complete sales before the New Year when new tax rules often come into effect, leading to a quieter market in the first quarter.
Key facts include:
– Dubai topped the annual rankings for the fourth consecutive quarter and recorded price growth of 27.7% in the last year to the end of March.
– However prices rose by only 3.4% in the first three months of 2014, evidence that the doubling of transfer fees and mortgage cap are having an impact on the Emirate’s property market.
– The turnaround in the US, Australian and Icelandic housing markets is evident with all three countries now appearing in the top ten annual rankings for price growth, alongside key emerging markets such as China, Turkey and Brazil.
– The bottom ten rankings reads like a geographical tour of Eastern and Southern Europe. House prices here, while still in decline, are now falling at a slower rate.
– Singapore and Japan are the only non-European countries in the bottom 14 rankings.
We expect to see the Index’s performance strengthen again in the second quarter.
James Lewis, General Manager at Knight Frank UAE, said: “For the first time since 2008 no single country tracked by the Global House Price Index has recorded an annual price fall in excess of 10%.”
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