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Johannesburg - South Africa now ranks as the sixth-fastest growing housing market in the world, according to the Knight Frank global house price index for the third quarter of 2009 released on Wednesday.
The British-based property group tracks house price growth in 42 countries across the globe. The report discloses that the recovery in global house prices is now well under way, with 23 countries reporting price growth during the period under review (quarter-on-quarter).
Hong Kong led the quarterly growth stakes with an average house price rise of 6.3%, followed by Hong Kong (6.3%), Canada (4.9%), Australia and New Zealand (both 4.2%) and South Africa (3.8%).
The UK, initially hard hit by the global liquidity crunch, is also staging a strong comeback with growth of 3.7% recorded in third quarter 2009. It appears a shortage of houses for sale amid growing demand is driving the recovery in that country.
Over a 12-month period, SA ranks in 15th spot with annualised growth of 1.3%. Israel is the top performer over a 12-month period with prices increasing 13.7% in the year to end-September 2009.
Dubai registers biggest drop
Israel was the only country to have recorded double-digit growth on an annual basis. Australia (9.7%) and Malta (9.7%) came in at second and third spot respectively.
Unsurprisingly, Dubai recorded the largest third-quarter annual drop, with property values almost halving (-47%) over the 12-month period. Dubai World's recent debt issues have no doubt dented investor confidence in the United Arab Emirates state.
Liam Bailey, head of residential research at Knight Frank, said house prices are now rising in almost 70% of the locations tracked by the index, compared to less than 50% in second quarter 2009.
However, there are still a few European countries that have yet to recover from the credit crunch. Countries where prices are still falling on a quarterly basis include Spain, Denmark and Ireland. Bailey said it appears that an oversupply of stock is holding back prices in these regions.
Bailey cautioned that the recovery in global housing markets is not necessarily a one-way bet. "The recovery from the global recession is unlikely to be trouble-free, as the recent problems in Dubai have highlighted. But it does seem that any further house price falls are likely to be corrections rather than the start of another round of drastic reductions."
- Fin24.com