Knight Frank have recently published the residential house price index for the 3rd quarter of 2017, which shows that the growth weakens. The overall result is that the index increased by 5.1% year-on-year compared with 6.3% last quarter, which represents the index’s lowest rate of annual growth since the start of 2016. The striking point is that the shift was most evident at the top of the rankings table: 13 of the 15 strongest performing housing markets around the world registered a slowdown in their rate of annual growth in the year to September.
According to the Q3 Index, Iceland leads the annual rankings with average prices ending the year to September 20.4% higher, down from 23.2% last quarter. Hong Kong is holding the second position in Knight Frank’s ranking, whereas Ukraine is the weakest performing market, and naturally it is at the bottom of the ranking. Turkey’s position in the ranking is still strong: 6th with 11.1% growth even though the growth has slowed down compared to the first two quarters in 2017 – 13.3% in Q1 and 12.4% in Q2. According to Knight Frank’s report, here is the point, Turkey is holding the 1st position over 5 years to Q3 2017; the overall growth is 95.3%. It is worthwhile to note that 11.1% growth of Turkey is almost double compared to the average growth of 5.6% in Europe. The UK market has incurred a marginal dip from 2.8% to 2.6%, and its position in the ranking for Q3 2017 is 42nd. New Zealand slipped from 10th place to 27th as annualised price growth declined from 10.4% to 5.2%, which is not surprising (please check the article on our website on New Zealand). Chinese market has slowed down (dropped from 12th to 19th position).
For full list and further details, please check the following link: http://content.knightfrank.com/research/84/documents/en/global-house-price-index-q3-2017-5139.pdf
Evren Erem, VIP Property
