Global House Price Index for Q2 2011


india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Delhi NCR real estate, Mumbai Real Estate, Bangalore Real Estate, Pune Real Estate news, Hong Kong Real estate news, Singapore Real Estate News, Malaysia Real Estate news, Asia Real Estate newsResidential prices in Asia continue to increase, contrary to the pattern elsewhere, according to the Global House Price Index for the second quarter of 2011 by property consultant Knight Frank. The index, based on a study of 50 countries, shows that Asia continues to be the top-performing continent in terms of house price inflation — a position it has held for seven consecutive quarters.

According to a press release from Knight Frank, house prices declined in 23 of the 50 countries monitored by the index in the last three months. But Asia outperformed all other regions, with prices increasing an average of 8 per cent in the last one year. Price increase was the strongest in Hong Kong, with 26.5 per cent growth during this period. Global house prices rose 0.1 per cent in the three months to June 2011, contributing to an annual growth of 1.7 per cent, which contributed to keeping the index out of the negative territory. North America and Europe remain the weakest performing regions, where prices declined by 0.9 per cent and 0.1 per cent respectively, in the last one year. The global housing market is at its weakest since 2009.

According to Knight Frank, this weak performance shows the extent to which many of the global economies are struggling in the wake of the 2008-09 economic crisis. Lending, for most developed economies, remains constrained, confidence is low and households’ disposable incomes are waning.

The overall fall in prices can also be attributed to the absence of double-digit annual price growth, which was observed in China, Singapore and India during much of 2009 and 2010. There are clear signs that Asian policy measures, aimed at cooling asset price growth are having some success. Annual price growth in Singapore stood at 6.7 per cent in the second quarter of 2011, down from 37 per cent a year earlier. Similar patterns are emerging in India and China, both of which recorded quarterly price drops in the three months to June, of 1.7 per cent and 0.1 per cent, respectively.

A key component of Asia’s 8 per cent annual growth in the second quarter of 2011 has been Hong Kong’s strong performance. The Hong Kong market has displayed greater resistance to anti-inflationary measures, but the tide is starting to turn. Quarterly price growth in the second quarter of 2011 is at 3.5 per cent, from 10.1 per cent last quarter.


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