Three Australian capitals recorded some of the strongest gains in house prices over the year to the first quarter of 2022.
According to The Knight Frank Global Residential Cities Index, Australian cities averaged 18.3% annual growth over the first quarter of the year, with Brisbane being the frontrunner for its 28.4% price gain.
Brisbane placed 10th in the list, just slightly behind Hamilton (28.5%) and Dallas (28.8%).
Meanwhile, Hobart clinched the 12th position with a 26% house price gain. A few steps down at 14th is Adelaide with 25.1% growth.
Further down the list are Canberra (18.4%, 26th), Sydney (16.1%, 31st), Melbourne (9.2%, 66th), and Perth (3.5%, 121st).
Global city house prices at its fastest growth
The index, which tracks 150 top global housing markets, posted an average growth of 11.5% over the first quarter of the year, the highest since the third quarter of 2004.
Topping the list were three cities in Turkey, which all posted gains of over 100%: Istanbul (122%), Ankara (111.7%), and Izmir (105.9%).
Around 94% of all cities reported price gains over the quarter, higher than the share of 85% last year.
Interestingly, city house prices outpaced their national markets which registered growth of 10.3% over the same period.
Knight Frank head of international residential research Kate Everett-Allen said the market cycle across global markets is shifting as inflationary pressures surge and costs of debt increase in the rising rate environment.
“Set against this backdrop of heightened uncertainty, rising taxes and more property market regulations, we expect the rate of price growth to slow in most markets, but we think a sudden shift to negative price growth is unlikely for most cities in 2022,” she said.
“Along with key fundamentals such as economic growth, supply levels and employment, the speed and scale by which interest rates rise will determine the extent of the slowdown in price growth over the coming year.”
Photo by @bpatelnz on Unsplash.
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