Istanbul leads the world’s annual rankings
The pandemic-induced housing boom continues with prices rising by 9.2% on average across 55 countries and territories in the year to June 2021.
A breakdown by developed and developing economies, however, reveals a more nuanced picture.
Ten of the world’s developed economies averaged price growth of 12% in the 12 months to June, double that seen in key developing markets (4.7%).
Turkey (29.2%) leads the annual rankings, but its rate of growth is slowing.
Several key economies including New Zealand (25.9%), US (18.6%), Australia (16.4%), Canada (16%) and Russia (14.4%) also make it into the top ten. In total, 18 markets registered double digit price growth, up from 13 last quarter and seven a year ago.
Only two markets saw prices decline in the year to June 2021 — India and Spain. This is the lowest proportion of markets registering a decline in prices since the Global House Price Index commenced in 2008.
Close to the peak?
Despite strong price growth there are signs of softening demand in some markets. In the US, mortgage applications have dipped and the share of households thinking now is a good time to buy hit a decade low of 28% in June.
The prospect of interest rate rises in markets such as New Zealand, the US and the UK is also likely to weigh on buyer sentiment in the medium term. But conversely, recent tighter restrictions in South East Asia, New Zealand and Australia may yet spark renewed activity as lockdowns shine a light on homes and lifestyles.