The chances of investors making property profits are narrowing worldwide as the gap between the fastest and slowing growing markets narrows.
Only three countries have double digit price growth – Turkey, New Zealand and Canada, according to international property consultants Knight Frank.
Turkey is the leader, says the latest Global House Price Index for the second quarter of 2016.
With house prices rising at an average 13.9% year on year, Turkey is ahead of New Zealand (11.2%) and Canada (10%).
For British expats looking to buy a home in the favourite destinations, prices are rising in Australia (6.8%); the USA (5.1%), Spain (2.4%) and France (0.3%).
Best city has biggest house price drop
Of the 55 countries surveyed, prices are dropping in 11. Coincidentally, Taiwan, which was voted the best place for expats to live in a recent separate survey, has the fastest falling house prices – down 9.4% in the 12 months to the end of June 2015.
“Turkey, Sweden and New Zealand have occupied the top positions in our index while key Asian markets have dominated the lower ranks. This quarter is no different,” said report author Kate Everett-Allen.
“Yet closer inspection shows the extremes are moderating. The percentage points separating the strongest and weakest performing housing market have narrowed from 33 points in Q3 2015 to 23 this quarter.”
Global House Price Index Q2 2016
| Rank | Country | Annual change |
|---|---|---|
| 1 | Turkey | 13.90% |
| 2 | New Zealand | 11.20% |
| 3 | Canada | 10.00% |
| 4 | Chile | 9.40% |
| 5 | Sweden | 8.90% |
| 6 | Malta | 8.80% |
| 7 | Austria | 8.10% |
| 8 | Iceland | 8.10% |
| 9 | Mexico | 8.00% |
| 10 | Germany | 7.90% |
| 11 | Israel | 7.80% |
| 12 | Malaysia | 7.20% |
| 13 | Jersey | 7.00% |
| 14 | Lithuania | 6.90% |
| 15 | Colmbia | 6.80% |
| 16 | Australia | 6.80% |
| 17 | Ireland | 6.60% |
| 18 | Luxembourg | 6.30% |
| 19 | Latvia | 6.20% |
| 20 | China | 5.90% |
| 21 | Norway | 5.50% |
| 22 | India | 5.20% |
| 23 | Hungary | 5.20% |
| 24 | UK | 5.20% |
| 25 | USA | 5.10% |
| 26 | South Africa | 4.80% |
| 27 | Slovakia | 4.70% |
| 28 | Netherlands | 4.60% |
| 29 | Bulgaria | 4.60% |
| 30 | Czech Republic | 4.50% |
| 31 | Denmark | 3.50% |
| 32 | Belgium | 3.50% |
| 33 | Portugal | 3.40% |
| 34 | Indonesia | 3.40% |
| 35 | Romania | 2.70% |
| 36 | South Korea | 2.70% |
| 37 | Russia | 2.60% |
| 38 | Spain | 2.40% |
| 39 | Estonia | 1.60% |
| 40 | Finland | 1.50% |
| 41 | Switzerland | 1.20% |
| 42 | Slovenia | 1.00% |
| 43 | France | 0.30% |
| 44 | Croatia | 0.20% |
| 45 | Poland | -0.10% |
| 46 | Japan | -0.30% |
| 47 | Brazil | -0.70% |
| 48 | Italy | -1.20% |
| 49 | Cyprus | -1.60% |
| 50 | Singapore | -2.40% |
| 51 | Greece | -2.90% |
| 52 | Morocco | -3.60% |
| 53 | Hong Kong | -8.10% |
| 54 | Ukraine | -9.20% |
| 55 | Taiwan | -9.40% |
Source: Knight Frank
