- 13 countries and territories worldwide registered double-digit home price growth in Q1 2021
- Pace of price increases fastest in 15 years
Boom in Global Housing Prices Spurs Price Increases to 15-Year High
Say what you will about Â at least 12,000 impacts of the COVID pandemicâ€¦one impact is the fastest worldwide home price growth in 15 years.
According to the most recent Knight Frank Global House Price IndexÂ that measures average home prices in 56 countries and territories, global home price growth increased +7.3% y/y in Q1 2021.
Housing Preferences Have Changed
According to Kate Everett-Allen, head of international residential research with Knight Frank,Â â€œA contributory factor to rising house prices globally has been the mass reassessment of housing needs in the wake of the pandemic, whether thatâ€™s been buyers seeking home offices, gardens, or just to be closer to wide-open spaces.â€
Everett-Allen continued.Â â€œThe demands on the home have increased in lockdowns and homeowners have reflected on where and how they want to live, prompting many to relocate or purchase a second home.
Price Changes Across Major Countries in Q1 2021
Take a look at price shifts in these countries:
- Turkey – +32.5%
- New Zealand – +22%
- US – +13%
- Canada — +10.8%
- UK – +10.2%
- Japan – +6%
- China – +4.9%
If you were to do away with inflation, home prices in Turkey would indicate an increase of +16% y/y rather than +32.5%
13 Countries Posted Double-Digit Annual Price Growth
In addition to the primarily developed nations listed above posting double-digit home price growth in Q1 are:
- Sweden – +13%
- Austria – +12%
Everett-Allen said, â€œHomeowners in these developed nations have also seen some of the largest rates of accrued savings.Â For some, this may mean they now have a deposit for their first home, or enable existing homeowners to upgrade.â€
Some Countries Attempting to â€œBubble-Proofâ€ Housing Markets
Past experiences with housing bubbles have pushed some countries to adopt market-cooling measures.
China, New Zealand and Ireland introduced higher stamp duties for investment properties as of January 2021.Â China is also considering instituting a page out of Canadaâ€™s bubble-cooling strategiesâ€¦a national vacancy and/or property tax.
Some Countries Left Out of Housing Boom in Q1 2021
Not all countries experienced house-pricing booms during Q1.
Those that didnâ€™t include:
- Malaysia – -0.9% y/y
- Morocco – -1.2% y/y
- India – -1.6% y/y
- Spain – – 1.8% y/y
Thanks to Knight Frank and MansionGlobal.
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