Knight Frank’s Global House Price Index for the fourth quarter of 2021 shows that Australia had the world’s highest annual growth rate in house prices during the year.
Global real estate prices rose by an average of 10.3 percent in 2021. Australia’s growth is recorded at 17.5 percent. Turkey recorded a nominal growth rate of 59 percent for 2021, but subtracting Turkey’s inflation from 36 percent at the end of 2021, Australia recorded the highest growth spurt.
“With savings earning interest during the pandemic in what is still a relatively low interest rate environment, the resilience of residential property as a safe haven remains attractive and is one of the reasons Australia has posted significant appreciation in value over the past year,” said Knight Frank Australia Head of Residential Research , Michelle Ciesielski.
“We have now reached a point where the Australian property market has grown weary after experiencing significant appreciation in value on the back of an economic recovery and is now once again grappling with global uncertainty, a natural disaster and an upcoming general election.
“We cannot ignore the fact that in our cities and regional areas of Australia we are facing a delay in construction in an already shrinking pipeline of new developments, a smaller number of local and international investors joining the rental pool and a likely increase in the skilled migrant population, which also increase the demand for rental properties.
“Despite emerging economic headwinds, the current imbalance between demand and supply in Australia’s main residential property markets could result in further price increases of up to 8 per cent by year-end for at least the next three years.”
Regardless of whether nominal or real prices are followed, the top 5 performers remain the same, their order simply shifts, these include Turkey, New Zealand, Czech Republic, Slovakia and Australia.
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