Across the world property markets continued to perform well in the second quarter of the year, surprising agents Knight Frank.
Prices typically rose by 1.6% across the quarter, while average annual price growth remained at a high level of 10%.
In its commentary, as part of its Global House Price Index research, Knight Frank said: “Perhaps we’re premature with our doom mongering and the inflection point will be next quarter.”
However it added: “Although the global picture in nominal terms is one of relative resilience, there are signs Asia Pacific is ahead of the curve when it comes to the slowdown.”
Indeed, of the seven markets that saw prices decline between March and June 2022, six are in the Asia Pacific region: Hong Kong, South Korea, Chinese mainland, Australia, Malaysia, and New Zealand.
The Chinese mainland is now recording an annual decline of -2.4%.
Turkey skews the data, as the country is dealing with rapid inflation that’s north of 80%, which has helped push house price growth to a mind-boggling 160.6%.
After Turkey there’s big increases across Europe in the likes of Slovakia (25.5%), Czech republic (23.5%), Iceland (22.9%) and Estonia (21.0%).
Knight Frank described the US housing market as ‘resilient’ in sixth place with 21% annual growth, but a slowdown is on the cards.
While price growth remained strong, higher mortgage rates led to another fall in existing home sales in July, which are now down by 26% from their peak in January.