Global property prices recover, according to a survey

Global property prices recover, according to a survey
Dec 11, 2009 - PropertyGuru.com.sg

Property prices in Singapore recorded the highest rise globally in Q3 2009, according to the latest Global House Price Index from Knight Frank.

Although two-thirds of the countries covered in the survey showed an increase in property prices, year-on-year property prices in more than half of the countries covered are still down.

Israel’s property prices also posted the highest gain of up to 13.7 percent year-on-year.

Singapore property prices surged to 13.7 percent in the third quarter compared with the second quarter, while Dubai’s year-on-year property values dropped 47 percent.

“House prices are now rising in a clear majority of locations around the world with almost 70% of the locations reporting growth in the third quarter of 2009. This compares with under 50% during the second three months of the year,” said Knight Frank's head of residential research, Liam Bailey.

“There is still, however, a clear polarisation from the top to the bottom of the table. Israel remains the best performer on an annual basis and is the only country to have recorded double digit growth,” he added.

“Dubai has fallen the most despite posting a small recovery and the recent debt issues with Dubai World and the subsequent loss of confidence by investors means even this nascent rally is already under threat.”

Properties in Ireland, Denmark and Spain have yet to document their first quarter growth since the credit crisis due to the weak economic condition and an oversupply of housing.