Iceland And Hong Kong Home To The World’s Hottest Housing Markets

26 Jun 2017

Property bubbles continue to be the focus of attention in Thailand, but it is a much different story in Iceland and Hong Kong where the hot real estate markets are causing concern after they finished in the top 2 spots of Knight Frank’s Global House Price Index for Q1 2017.

The European island nation and Chinese SAR both posted double digit average price growth in the 1st quarter of this year. A total of nine other countries had price growth of 10 per cent or higher during the period up from 4 countries in the same period last year.

Average price growth in Iceland was 17.8 per cent and the situation could get worse on the island if the estimated 9,000 new apartments needed over the next 3 years in Reykjavik to keep pace with demand aren’t delivered, according to Kate Everett-Allen, Partner with International Residential Research at Knight Frank.

Housing prices in Hong Kong continue to rise despite newly introduced lending restrictions, reported Nicholas Holt, head of research for Asia-Pacific. In the 1st quarter, average price growth came in at 14.4 per cent. And while property curbs have helped cool the housing market in Mainland China, which dropped from 7th to 10th place worldwide on the index, home prices in Hong Kong keep rising.

“The headline national figure is somewhat tempered by weaker growth in some of the smaller Tier-3 and Tier-4 cities,” says Holt.

The Knight Frank index tracks housing prices in 55 countries. The report concludes home prices worldwide grew by 6.5 per cent between the 1st quarter of 2016 and the 1st quarter of 2017. This was the highest growth rate recorded in the past 3 years.

“Three of the top 10 strongest growing markets globally were in Asia-Pacific at the end of the first quarter of 2017,” says Holt.

This story appears at

Receive the latest property news on email from Thailand’s No.1 property website here, or read more project reviews


You may also like these articles

Phuket Property Prices Predicted To Rebound

Apart from some segments of the market like villas, real estate in Phuket hasn’t been performing all that well. However, things could be changing. Real estate agencies on the island have reported an

Continue Reading20 Jun 2017

Low Interest Loans For Bangkok Flood Victims Set To Increase

In the aftermath of the Bangkok floods in 2011, the Bank of Thailand sponsored low interest rate loans to victims of the catastrophe. However, those interest rates are set to increase in the coming mo

Continue Reading21 Jun 2017

Sothern Thailand Hopes Infrastructure Projects Boost Property Market

The property market and residential demand in Thailand’s southern provinces could be dependent upon government investment in infrastructure projects, according to experts. This is because rubber pri

Continue Reading22 Jun 2017