Australia's House Price Growth Soars As Global House Prices Defy Economic Climate

Australia's house price growth jumped 12.4 per cent in 2015, according to new research.

Knight Frank's Global House Price Index for Q4 2015, which monitors and compares the performance of mainstream residential markets in 55 countries across the world, has been released.

According to Knight Frank’s Director, Residential Research, Australia, Michelle Ciesielski, “Australasia was the strongest-performing global region in 2015 at 12.4 per cent, buoyed by the strong performance of New Zealand and Australia, both of which saw annual price growth in excess of 10 per cent."“Australia was ranked number four on the Global House Price Index for the fourth quarter of 2015, up from seventh in the previous quarter, with an annual growth rate of 10.7 per cent. Turkey led the Global House Price Index, with growth of 18.4 per cent.

“New Zealand followed directly behind Turkey, with an annual price growth of 14.2 per cent as of the fourth quarter of 2015, bringing it to second place from its position at third place during the previous quarter.

“Housing affordability, or the lack of it, is rising up policymakers’ agendas worldwide. According to the latest data from the OECD, which measures house prices against incomes for 24 of its 34 members, Belgium, New Zealand and Canada are currently the world’s least affordable markets, whilst home ownership is most accessible in South Korea and Japan.

“The OECD currently ranks Australia fourth least affordable, at 29 per cent over-valued relative to the long-term average held."According to Kate Everett-Allen, Partner, International Residential Research, Knight Frank, “Our global outlook for 2016 is muted. We expect the index’s overall rate of growth to be weaker in 2016 than in 2015. The global economy is experiencing a potentially dangerous cocktail of low oil prices, a strong dollar and a continued slowdown in China.”

Results for Q4 2015