Real estate price falls going global
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.