Chinese cities have grabbed the top eight places for house price growth worldwide.
Out of 150 cities monitored by housing experts, China held 25 places – more than any other country.
China also took 10 of the top 13 places which reported house prices rising more than 25% year-on-year in the third quarter of 2016. Top spot went to Nanjing, where home values rocketed by 42.9%.
With a population of more than 8 million, Nanjing is on the Yangtze river and has one of the world’s largest inland ports. The local economy is based on services, finance and tourism.
Outside China, the cities with hot property prices are Vancouver, Canada (24%); Chennai, India (24%) and Budapest, Hungary (23.6%), according to the report from international property consultants Knight Frank.
Although 116 cities had price increases, prices in Florence stood still, values fell in 33 places.
The largest falls were in Moscow (-10.2%) and Aberdeen, UK (-10.5%).
Restrictions on home buying
“Urbanisation and rising household wealth is behind the surge in Chinese prices but it is far from uniform with smaller cities and rural markets lagging behind,” said Kate Everett-Allen, an international residential researcher with Knight Frank.
“China’s rapidly-rising urban house prices have not escaped the attention of policymakers with many cities seeing the tightening of mortgage lending, higher deposit requirements, and in some cases, a ban on non-local buyers.
“Home purchase restrictions even saw couples divorcing to enable them to buy more properties.”
By region, house prices rose everywhere, except Russia, where they dropped an average 5%.
Asia saw the highest average growth of 12.7%, followed by the Middle East (9.8%) and North America (6.1%).
Africa had the lowest growth – just 0.3%.
Top 20 Q3 2016 – Residential house price growth
Source: Knight Frank