Inflation-adjusted house prices in Thailand rose by 3.87 percent during 2013 following a 1.94 percent decline in 2012, according to new research from Global Property Guide.
The global house price boom continued to accelerate last year, led by the U.S. and Asia-Pacific, according to the survey of official house price statistics from around the world. Using the inflation-adjusted figures, the survey revealed that house prices increased in 27 of 42 housing markets which published official housing statistics. The more upbeat nominal figures, which are more familiar to the public, showed house prices rising in 31 countries, and falling in only 11 countries.
All 20 major U.S. cities saw house prices rise, with Las Vegas registering the biggest inflation-adjusted year-on-year increase of 23.7 percent during 2013. Construction activity remained upbeat, demand continued to rise and the economy remained healthy.
In New Zealand, median house prices rose by 8.02 percent during 2013 after rising 8.54 percent in 2012 Likewise, Australia’s housing market saw its strongest performance in four years. House prices in the country’s eight major cities rose by 6.47 percent during 2013.
Asian housing markets remain upbeat. In Taiwan, house prices soared by 14.46 percent during 2013, almost double the increase of 7.72 percent in the previous year.
In the Philippines, the average price of three-bedroom condominium units in Makati’s central business district surged by 10.56 percent during 2013, up from an increase of 4.85 percent in 2012.
In Shanghai, China, the price index of second-hand residential buildings surged by 10.13 percent during 2013, in sharp contrast with the 1.85 percent decline during 2012.
In Indonesia, residential property prices in the 14 largest cities rose by 5.82 percent during 2013, an improvement from the increase of 2.27 percent seen in 2012.
The Middle East’s housing markets remain strong. After two years of spectacular house price rises, Dubai’s housing market continues to grow stronger, with house prices soaring by 21.52 percent during 2013, after rises of 21.64 percent in 2012, and 6.3 percent in 2011.
Likewise, in Israel, the average price of owner-occupied dwellings rose by 4.61 percent during 2013, after an increase of 4.12 percent during 2012.
Half of Europe is booming. In Tallinn, Estonia, the average purchase price of dwellings surged 16.55 percent during 2013, far higher than the meagre 1.59 percent growth seen in the same period last year.
In Vienna, Austria, the residential property price index rose by 7.51 percent during 2013, its sixth consecutive year of continuous house price rises.
Other strong European housing markets included Ireland, with house prices rising by 6.18 percent during 2013, Turkey (5.73 percent), U.K. (4.88 percent), Riga, Latvia (4.64 percent), and Iceland (4.33 percent). All, except Austria and Turkey, showed better performance in 2013 compared to the previous year.
In addition, some European housing markets also saw modest to minimal house price rises. This group included Sweden, with house prices rising by 3.98 percent in 2013, Germany (3.69 percent), Switzerland (3.24 percent), Vilnius, Lithuania (2.41 percent), Kiev, Ukraine (1.63 percent), and Bulgaria (0.38 percent). All, except Ukraine, performed better this year compared to a year earlier.
Romania was the world’s weakest housing market during 2013, with house prices plunging by 10.43 percent, after annual house price falls of 5.96 percent in 2012.
In summary, Global Property Guide said: “The global house price boom continues to gather pace, with most countries back to their pre-crisis levels. House prices are rising in many more countries than not, and the momentum trend is strongly upwards.”
Andrew Batt, International Group Editor of PropertyGuru Group,
wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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