NZ HOUSING CRISIS: Global house price growth 2021

PHOTO: Knight Frank’s Global House Price Index

Knight Frank’s Global House Price Index tracks the performance of 56 national housing markets around the world using official data from Central Banks or National Statistic Offices in each country.

Q4 2021 data was released this week, allowing a full picture of the past year to form.

The report shows that global home prices rose at their fastest rate in almost 18 years in 2021, with prices across 150 major cities seeing a 10.3 per cent average rise.

The report looks at nominal or unadjusted values, as well as ‘real’ values with inflation accounted for, in local currencies.

Turkey leads the pack in terms of nominal house price growth, with a whopping 59 per cent increase across last year. Adjusted for Turkish inflation at 36 per cent however, Turkey drops to second place with a total of 17.3 per cent average growth.

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Australia edges ahead with an average of 17.5 per cent growth in 2021 – the highest rate of real annual price growth in the entire world.

The research states that whether you track nominal or real price growth, the top five performers remain the same, their order simply shifts.

Those markets are: Australia, Turkey, New Zealand, Czech Republic and Slovakia.

Global House Price IndexQ4 2021 Knight Frank Australia and Turkey highest rate of house price growth in world 2021 — **Turkey is off the chart with 108 per cent. (Knight Frank)**

Out of 56 countries tracked, only three saw a decline in nominal house prices in 2021: Malaysia, Malta and Morocco.

And in the USA and UK, $US 64,500 and £26,800 were the average increases in the price of a home in 2021, respectively.

“The 10 markets that have witnessed the strongest increase in house prices since the start of the pandemic are largely developed markets where governments stepped in to support economies, and in some cases, housing markets via mortgage holidays or subsidy programmes,” the report explained.