The 9 hottest housing markets in the world right now
THE 9 HOTTEST HOUSING MARKETS IN THE WORLD
While the growth in US home prices has slowed considerably, prices in Europe have been surging.
We have complied the list of the nine hottest markets based on inflation-adjusted year-over-year price as of the first quarter of 2015, based on data from the Global Property Guide. Five of the nine countries that had prices jump more than 7% year-over-year were from Europe, with Ireland leading the way.
Each slide also is accompanied by a chart showing the year-over-year percentage change in house prices. Countries are listed from lowest to highest growth in appreciation.
9) ICELAND
Home prices in Iceland rose 7.71% year-over-year, up from 7.37% in 2013. Prices were also up 3.20% from the previous quarter.
Source: Global Property Guide
8) NEW ZEALAND
Home prices in New Zealand rose 7.85% year-over-year, down from 8.36% in 2013. Prices were also up 5.85% from the previous quarter.
The Guide notes that monetary policy could impact the market: “The Reserve Bank of New Zealand (RBNZ) kept its official cash rate (OCR) at 3.5% in April 2015, after raising it four times last year. However, in May 2015 the RBNZ announced that in October it intends to introduce new loan-to-value ratio (LVR) limits, requiring 30% deposits when lending to property investors in Auckland.”
Source: Global Property Guide
7) TURKEY
Home prices in Turkey grew 7.86% year-over-year, up from 7.16% in 2013. Prices were also up 0.03% from the previous quarter.
The Guide links the price increases to the country’s GDP growth: “The Turkish economy is expected to expand by 3.1% this year, after annual growth of 2.9% in 2014, 4.1% in 2013, 2.1% in 2012 and 8.8% in 2011, according to the IMF.”
Source: Global Property Guide
6) PUERTO RICO
Home prices in Puerto Rico rose 7.99% year-over-year, up from -10.89% in 2013. Prices were also up 2.12% from the previous quarter.
Source: Global Property Guide
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5) ISRAEL
Home prices in Israel increased 8.26% year-over-year, up from 3.05% in 2013. Prices were also up 3.43% from the previous quarter.
New properties are driving growth. “Property demand is also surging. New dwelling sales skyrocketed by 25.9% y-o-y in Q1 2015, according to the Central Bureau of Statistics (CBS). Likewise, new dwelling supply also continued to increase slightly by 0.8% over the same period. The oversupply is likely to be temporary, as dwelling starts and completions are now declining,” said the Guide.
4) SWEDEN
Home prices in Sweden rose 8.79% year-over-year, up from 5.98% in 2013. Prices were also up 2.40% from the previous quarter.
The Guide says housing is improving despite a sluggish economy. “Sweden’s economy is projected to expand by a modest 2.7% this year, after growth rates of 2.1% in 2014 and 1.3% in 2013 and a decline of 0.3% in 2012, according to the IMF. Yet because of restricted housing supply and strong immigration, Sweden’s housing market has performed strongly, with house prices rising by 8.79% y-o-y in Q1 2015, the highest annual price increase in five years,” said the Guide.
Source: Global Property Guide
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3) ESTONIA
Home prices in Estonia grew 9.59% year-over-year, down from 20.10% in 2013. Prices were also up 3.27% from the previous quarter.
Growth has remained strong despite a slowdown in the capital city. “Estonia remains the second-best performer in Europe and the third-best housing market in our global survey, although Tallinn’s property market has slowed. In Tallinn the average price of dwellings rose by 9.6% during the year to Q1 2015, after annual price increases of 12.6% in Q4 2014, 15.4% in Q3 2014, 16.1% in Q2 2014, and 20.1% in Q1 2014,” said the Guide.
Source: Global Property Guide
2) HONG KONG
Home prices in Hong Kong increased 14.37% year-over-year, up from -2.27% in 2013. Prices were also up 4.28% from the previous quarter.
The prices are the signal of a bounceback after a rough start to 2014. “Hong Kong’s residential property prices surged 14.36% during the year to Q1 2015, a sharp turnaround from the y-o-y drop of 2.27% the previous year to Q1 2014. Hong Kong’s housing market had slowed sharply in the first half of 2014 due to government cooling measures but bounced back quickly in the second half,” said the Guide.
Source: Global Property Guide
1) IRELAND
Home prices in Ireland jumped 17.57% year-over-year, up from 7.49% in 2014. Prices were down quarter-over-quarter -1.24%.
The housing-price jump has coincided with a rapidly growing economy. “The Irish economy is now the fastest-growing economy in the EU, with GDP growth of 4.8% last year, after meager growth of 0.17% in 2013 and a contraction of 0.3% in 2012. The economy is expected to grow by 3.9% this year and by another 3.3% in 2016,” said the Guide.
Source: Global Property Guide