Real es­tate price falls go­ing global

South Waikato News - - NEWS -

New Zealand’s prop­erty mar­ket has re­treated with prices down in the year to Septem­ber, a world­wide real es­tate re­port says.

The coun­try’s me­dian house price was down 4.3 per cent af­ter in­fla­tion in the Septem­ber year and fell 2.3 per cent in the Septem­ber quar­ter, the Global Prop­erty Guide found.

The re­port in­di­cated the New Zealand prop­erty mar­ket could be due to im­prove how­ever, with op­ti­mism in­creas­ing on the back of lower in­ter­est rates and higher ac­tiv­ity ex­pected in Christchurch as part of the re­cov­ery process.

Ac­cord­ing to the lat­est Global Prop­erty Guide, house prices lifted in only 19 coun­tries of the 44 coun­tries an­a­lysed.

Prices sky­rock­eted in In­dia, with a 22.7 per cent rise in Delhi. Brazil hit sec­ond place with prices up 20.3 per cent while the prop­erty mar­kets in Latvia and Es­to­nia were also strong, ris­ing 13.3 and 12.3 per cent re­spec­tively.

In the Asian re­gion, the Hong Kong mar­ket im­proved 12.1 per cent in the year to Septem­ber while Sin­ga­pore prices were up 2.7 per cent, a much smaller rise than the 19 per cent rise the Sin­ga­pore mar­ket saw a year ear­lier.

China suf­fered sim­i­lar price falls to New Zealand.

The big­gest falls were in Ire­land, where house prices sank 15.6 per cent in the year to Septem­ber and Bul­garia, where prices pulled back 9.65 per cent. Spain was down 8.41 per cent and Por­tu­gal and Greece dropped 6.77 per cent and 6.57 per cent re­spec­tively.

The United States suf­fered a 7.4 per cent de­cline dur­ing the same pe­riod while Bri­tish prop­erty prices dropped 4.85 per cent.

High in­ter­est rates and global eco­nomic uncer­tainty also con­tin­ued to hurt the Aus­tralian hous­ing mar­ket, which slumped 5.55 per cent over the year – the third con­sec­u­tive quar­ter it has seen prices head south.

Ac­cord­ingly, the Re­serve Bank of Aus­tralia low­ered the bench­mark in­ter­est rate in Novem­ber to 4.5 per cent, the first rate cut since April 2009.

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