Knight Frank Launches Global House Price Index Q2 2018

Published on 2018-09-26

Hong Kong home prices growth ranks second in the globe

26 September 2018 (Shanghai) - Knight Frank, the independent global property consultancy, today launches the Global House Price Index*for Q2 2018. The index tracks the movement in mainstream residential prices on a national basis across 57 markets using data from official sources such as Central Banks and National Statistics Offices.

Results for Q2 2018:                                                      

  • The Knight Frank Global House Price Index increased by 4.7% in the year to June 2018. That is its slowest rate of annual growth since Q3 2016. 
  • Only seven of the 57 markets tracked registered falling prices over the 12 months to June 2018
  • Malta (17%) leads the index for the first time, moving ahead of Hong Kong 
  • Central and Eastern European countries are performing strongly
  • All eyes are on Hong Kong (16%), Singapore (9%) and New Zealand (7%) where new property regulations have been introduced in the last three months
  • Chinese Mainland home prices have risen by 6% in the past 12 months, ranking 23rd in the Global Price Index Q2 2018

David Ji, Director and Head of Research and Consultancy, Greater China, further explains, “Hong Kong’s high growth rate was fueled by the wealth effect of the booming stock market as well as the low interest environment during that period. However, since then there have been concerns such as the US-China trade war, Fed’s interest rate hike as well as the Hong Kong Government’s measures on housing that has begun to have an impact on sentiment. Still, we are forecasting house prices in Hong Kong to grow between10-13% over the course of this year”.

David Ji, comments, “Compared with previous years, Chinese Mainland’s growth in prices has visibly slow down thanks to price control measures by the government. The price control has a more pronounced impact on first-tier cities than second-tier cities as the growth there has almost been flat. Although escalating Sino-US trade dispute is likely to impact the Chinese economy, the domestic housing market is still driven by local supply and demand. Going forward, end-user demand will help absorb housing stock in second-tier cities whereas in first-tier cities purchase restrictions will further dampen price growth. Therefore, we expect that the housing prices to increase mildly over the course of 2018.”   

TOP TEN RANKINGS BY ANNUAL PRICE CHANGE

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The index’s overall performance is weighted by GDP on a Purchasing Power Parity basis and the latest quarter’s data is provisional pending the release of all the countries’ results.

To download the report, please visit: https://www.knightfrank.com/research/global-house-price-index-q2-2018-5804.aspx