global house prices being pulled down by euro crisis
News Posted On: 20 December 2011
According to the latest release of the Knight Frank global house price index, the world's house prices remained flat on average during the third quarter, making it the worst performance since the second quarter of 2009 according to the firm.
The index shows that prices fell in more than half of the 51 countries covered, and the firm puts this down to the Eurozone crisis putting a dampener on sentiment, and raising fears of a double dip recession around the world.
"The third quarter saw mounting pressures on the global economy with politicians seemingly helpless to get to grips with the eurozone debt crisis," said Kate Everett-Allen of Knight Frank.
"This has reawakened fears of a double dip recession, not just in Europe but around the world," said Ms Everett-Allen.
Some positivity comes in the fact that prices are still up year on year, by an average of 1.5% around the world. However, when you view this against the 10%-20% year on year price growth in several Asian countries, we can really see just how much Europe is dragging us all down.
In best-performing Hong Kong prices grew by 19.3% during the 12 months ending the third quarter, but fell 1.1% on the quarter. This is compared to worst performing Ireland, where prices fell by 14.3% over the year, and 3.8% in the third quarter alone. Spain was the second worst performer with prices falling 5.5% during the 12 months ending Q3.
Knight Frank believes the trend will not be reversed in the final quarter, and that this could see us dragged back into negative year on year territory on a global basis.
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Written by Liam Bailey
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