Latvia had the fastest
growing house prices in the
world with rises of 39.2 per
cent from July to September
of this year, new research
shows.
Knight Frank's Global House
Price Index, which looks at
property markets in 32
countries, finds Latvia was
joined by Bulgaria, up 19
per cent, and Denmark, up
17.8 per cent, as the
biggest risers in the third
quarter of 2006.
The biggest movement up the
global property market table
was by Norway (up 12
places), followed by
Australia (up ten places)
and the UK (up nine places).
At the bottom end of the
table, house prices in Hong
Kong, the US and Italy
dropped the most places,
with the German housing
market taking last place,
with prices down three per
cent from July to September
2006.
Across the globe, house
prices are up 8.4 per cent
in the twelve months up to
September 2006.
European countries are
leading the growth, with
South Africa the only
country outside of Europe in
the top ten.
"The general picture remains
a slowing of growth across
the board, especially in the
previously incredibly hot
locations in the recent EU
eastern European accession
states," said Liam Bailey,
head of Knight Frank
residential research.
"A levelling up is affecting
almost all the markets in
the former eastern bloc –
especially those which have
joined the EU in recent
years.
"Wage inflation, growing
prosperity and access to
less constrained mortgage
finance have all contributed
to rapidly rising prices.
The same process has been
experienced in Bulgaria
where domestic demand has
been complemented by
international second home
demand.
"Denmark has seen prices
benefit from a low but
growing proportion of
owner-occupation, full
transparency of ownership
for overseas investors and a
low and stable inflation and
interest rate environment.
"The general trend is that
global residential markets
continue to experience
slowing but positive growth
in spite of concern about
increasing affordability
issues, mounting household
debt and market
sustainability."
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