Australia’s property market came out as one of the leading performers in Q3 2009. It trumped most of the housing markets in the major economies, according to the latest ranking conducted by Global Property Guide.
According to the report, the housing market in Australia recorded a solid price increase of 4.9 percent year-on-year to end-Q3 2009, with Darwin having the highest price increase. Canberra and Melbourne also recorded strong price gains.
“The upsurge appears to have been partly fuelled by a genuine housing supply shortage. Key interest rates in Australia are now on the rise,” the report said.
Australia and other Asian countries currently enjoy high residential property price increases and strong economic growth, while many housing markets in the major economies around the world remain distressed, the report noted.
Israel earned the leading spot for two consecutive quarters, gaining 10.15 percent over the year to end-Q3 2009. It grew from 8.4 percent over the year to end-Q2 2009.
According to the report, New Zealand recorded 2.0 percent growth, a more modest gain over the year to end-Q3 2009, bringing the average sales prices to mid- 2008 levels.
Housing prices in Hong Kong surged 3.1 percent over the year to end-Q3 3009, a significant growth from the 7 percent decline year-on-year to Q2 2009. Housing prices soared 11.1 percent during the three months to September. This recent performance caused concern about over-ebullience, Global Property Guide said.
The report also stated that overheating is a concern in Singapore. Housing prices increased by an unprecedented quarterly record of 14.3 percent. This is despite the fact that home prices in Singapore remain down by 11.0 percent over the year. The report noted that the Singapore economy expanded 0.5 percent during the year to end-Q3 2009. Its manufacturing and construction sectors are the main source of growth, having expanded year-on-year by 6.6 percent and 12.8 percent, respectively.
The property markets in South Africa, Canada, UK and Germany have returned to black during Q3 2009, after suffering from quarterly decline in prices since 2008.
In the US, home prices during the third quarter increased 3.1 percent, according to the Case-Schiller index. In the UK, house prices soared 2.1 percent, according to the Land Registry, and 3.4 percent during the third quarter, according to Nationwide. UK home prices have been rallying since May, as noted by Global Property Guide.