The Knight Frank Global House Price Index for the first quarter of 2017 recorded an increase of 6.5% in the year to March 2017 – its highest annual rate of growth in three years.
The index measured the global mainstream housing market across 55 countries using data from official sources.
“Rather than global performance being purely driven by positive growth, the rise has been accompanied by an increase in the number of countries seeing double-digit annual price growth," Knight Frank Head of Residential Research, Australia Michelle Ciesielski said.
According to the index, eleven countries recorded double-digit growth in the year ending March 2017; a year earlier only four fell into this range.
Australia also saw an upward trajectory in prices, moving from 37th position in Q4 2016, with annual capital growth of 3.5%, to 20th position in Q1 2017 recording annual growth of 7.7%.
“The momentum in house price growth picked up in late 2016 for Sydney and Melbourne, and this flowed through to dominate the uptick in the national result," Ms Ciesielski said.
“Australia last saw annual double-digit annual growth in Q4 2015, when house prices grew 10.7% as Australia ranked in 4th position.
“Since this time, the ability to source lending finance has tightened for both local and foreign investors, mortgage interest rates have increased despite the official cash rate falling 50 basis points to currently stand at 1.50%.
“We also saw application fees for foreign buyers being introduced and state-based surcharges on stamp duty were increased in Victoria, and rolled out in NSW and Queensland,” Ms Ciesielski said.
Additional key findings