Global House Price Inflation Drops By Nearly A Third In A Year

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Average global house prices rose by 4.5% last year – dropping from 7% a year earlier, according to new data.

The latest house price rankings show a big about turn, with every Chinese city except Hong Kong plunging out of the top 20, with cities from Germany, The Netherlands and Europe racing up the chart.

Berlin took first place with a massive 20.9% price hike.

Out of the rest, 120 returned price rises, Kolkata, India, stood still and 29 saw home values fall.

Abu Dhabi props up the rankings, with a 9.1% price fall.

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“With fiscal stimulus being withdrawn, capital controls in place in China, and the beginning of a shift towards the normalisation of monetary policy, annual price growth above 20% is now confined to only a few outliers,” said Kate Everett-Allen of international property consultants Knight Frank, which compiled the data.

“At the end of 2016, 12 cities, most of them Chinese, registered price growth above 20%, a year later only one city falls into this category; Berlin.

“The slowdown in Chinese cities in 2017 had a marked influence on the index’s overall performance. In 2016, the 15 Chinese cities tracked by the index averaged 23% growth year-on-year. In 2017, the same 15 cities averaged 1.6% growth.”

Top 20 global cities for house price rises

Rank City Country % annual change
1 Berlin Germany 20.9%
2 Izmir Turkey 18.5%
3 Reykjavik Iceland 16.6%
4 Vancouver Canada 16.0%
5 Hong Kong China 14.8%
6 Budapest Hungary 15.5%
7 Hamburg Germany 14.1%
8 Munich Germany 13.8%
9 Rotterdam The Netherlands 13.4%
10 Frankfurt Germany 13.4%
11 Hobart Australia 13.1%
12 Seattle USA 12.7%
13 Amsterdam The Netherlands 12.4%
14 Dublin Ireland 11.7%
15 Surat India 11.4%
16 Utrecht The Netherlands 11.4%
17 Hamilton Canada 11.3%
18 Ahmedabad India 11.0%
19 Sofia Bulgaria 11.3%
20 Malmo Sweden 10.8%

Source: Knight Frank

Bottom 10 global cities for house price drops

Rank City Country % annual change
141 Dubai United Arab Emirates -3.8%
142 Rio de Janeiro Brazil -4.4%
143 Palermo Italy -4.6%
144 Kiev Ukraine -5.1%
145 Genoa Italy -6.2%
146 Darwin Australia -6.3%
147 Delhi India -7.2%
148 Turin Italy -8.3%
149 Lima Peru -8.4%
150 Abu Dhabi United Arab Emirates -9.1%

Source: Knight Frank

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