Feb 27, 2012 | Comments 0
While the U.S. seems to be regaining its footing, the global housing market continues its downward march, including in Asia, according to the latest world-wide survey of house price indices prepared by the Global Property Guide.
During 2011, of the 35 countries for which Q4 house price statistics are available, house prices fell in 22 and rose in only 13 countries, GPG reports.
According to the data, 21 housing markets performed worse during 2011 than last year. Only 14 countries performed better, indicating that the housing decline is speeding up.
The figures for the 4th quarter of 2011 are somewhat worrying, with quarterly price rises in only 10 countries, but price falls in 25 countries. On the other hand, the apparent trend towards recovery in the US is positive.
Almost all Asian housing markets in the survey performed more poorly in 2011 than during 2010, GPG reports.
House prices in Hong Kong were up 5.32 per cent on the year, much less than the 18.87 per cent rise the previous year. House prices in Singapore rose a mere 0.28 per cent, after a rise of 13.06 per cent the previous year. In both Hong Kong and Singapore there were price-falls in the final quarter of 2011, as a result of cooling measures, coupled with the uncertainties in the global economy. Hong Kong house prices fell 5.24 per cent during the quarter, and Singapore house prices fell 0.67 per cent.
During 2011, house prices in Taiwan fell 8.74 per cent, after rising 9.70 per cent the previous year. China (Shanghai) and Japan (Tokyo) had lesser declines at 3.23 per cent and 3.69 per cent, respectively. House prices may continue to fall in the coming months, for at least as long as the tightening policies remain in place.
However, housing markets in South Korea and Indonesia (14 cities) improved from a year earlier with price rises of 2.94 per cent and 0.89 per cent, respectively.
Delhi and Brazil were the world’s strongest housing markets in 2011, with patchy progress reported for New Zealand and Australia, and continued deflation across Europe and some cooling in the Middle East.