Asia-Pacific rallies; some European countries still suffer
Most housing markets in the world are in the process of recovery, according to the latest survey of residential property by online propertyresearch house Global Property Guide.
During the last quarter of 2009, house prices rose in 22 countries, out of 34 countries for which quarterly house-price statistics were available. Prices fell in 11 countries.
However, Global Property Guide said year-on-year figures told a story of an unhappy year in 2009. In the course of last year, 18 countries’ housing markets experienced price declines, while only 16 experienced house-price increases.
In other words, although figures from the last two quarters suggest that recovery is now taking place, most countries’ house prices are still down on the year, due to earlier declines.
The Global Property Guide’s statistical presentation uses price changes after inflation, giving what it claims is a more realistic picture than the “more upbeat” nominal figures usually preferred by real-estate agents.
The research house said that even in the limited sense of a third-and/or fourth-quarter recovery, the figures are uneven. Some countries in Asia are recovering rapidly. But housing markets in some of the world’s worst-hit countries have continued to decline.
Global Property Gude said the Asia-Pacific continued to rally.
Hong Kong and Taiwan have been Asia’s top performers. Hong Kong’s house prices are already back above pre-crisis levels. The housing market there experienced a quick turnaround. with prices surging 20.81 per cent over the entire year after suffering a 15-per-cent decline in the first quarter of 2009. In Taiwan, house prices were up by 18.29 per cent during 2009 and by 4.7 per cent during the final quarter. Investors’ confidence in the Taiwanese market has significantly improved, after the signing of a number of economic agreements with China, the research house said.
After a painful decline in 2008 (-9.59 per cent), 2009 was a roller-coaster ride in Singapore’s housing market. After price falls in the first half of the year, house prices surged by 14.3 per cent in the third quarter of 2009, and by 6.58 per cent in the fourth quarter. During the entire year, Singapore’s house prices were up 2.12 per cent.
The Singaporean government was quick to react against speculative buying by tightening credit rules, introducing a seller’s stamp duty and lowering the loan-to-value limit for housing loans.
Australia and New Zealand have sustained the increases they experienced during the middle of 2009. Australia’s house prices increased by 11.28 per cent during 2009 (4.63 per cent during the fourth quarter), while New Zealand’s increased by 4.86 per cent (3.4 per cent during the fourth quarter).
Recovery is coming slowly to Japan, Global Property Guide said. The average price of existing condominiums was up by ameagre 0.8 per cent over the whole of 2009. The increase is only evident when prices are adjusted for inflation. However, there was an increase of 3.55 per cent during the fourth quarter.
Thailand’s house prices slumped by 15.56 per cent during 2009, but rose by 1.97 per cent during the last quarter.