Signs of recovery in the global housing market have been seen by a growing number of countries. New research data suggests that many markets are slowly but surely recovering from the global financial crash.
A survey held by the Global Property Guide shows that 19 out of 36 countries have seen price increases in their property sector during the first quarter of 2010. Many of the countries who previously showed some of the biggest declines have recorded strong growth.
The Global Property Guide report uses price changes after inflation for their statistics, making them more realistic in view of the situation. There was a clear message that the global housing bust was over. Whether this is a clear-cut and true is yet another story.
Surprise in the US market
It seems that not all countries are recording solid growth. The US housing market – which was one of the hardest hit – is still showing declining figures for this year’s first quarter. Year-to-year saw a 0.23% drop. However, despite this dose of reality things are certainly on the up-rise, given the fact that last year saw a loss of 18.68% in the fall from the year previous.
Leading Europe’s markets is Finland with a strong growth rate of 11.03%. Finland was one of the hardest hit countries in the GFC and the report indicates that housing prices in the country are expected to rise further before the year comes to a close.
Norway’s housing market grew by 7.65% year-on-year. This is a result of two major stimulus factors; low interest rates and a massive stimulus package.
Not far behind with a 6.63% rise is Luxembourg. The previously heavily bashed UK recorded a 5.43% increase in property prices, whereas France and Germany gained 0.5%, a very modest growth.
Asia top ranking
Among all the regions surveyed for the report Asia is definitely the strongest contender with not just one, but four regions in the top 4.
Hong Kong is the clear winner overall with a very strong 27.15% growth rate after inflation. Globally speaking, Hong Kong is also leading the property market pack at this point in time based on its great return from the “dead.”
Meanwhile Taiwan and Singapore preparing for a possible housing bubble.
Australia is also amongst the countries showing the strongest rebounds year-on-year. It recorded a 16.58% growth, last year’s figures were in the minus with -7.77%.
One of the previously strong contenders was Israel. They showed remarkable strength last year when everything around them went belly-up. Again, this year’s figures show us that Israel’s property market has kept its strong growth rate. With figures of 5.87% last year, 2010 has seen more than double that with a healthy 12% after inflation.
You can see for yourself on the table below how the global housing market looks at this point in time. Towards the bottom of the table you can find many countries who still suffer from the aftermath of the global financial crisis.
Having said this, you can also see by the figures that many of them are on the way up (not hard once the market is at rock bottom).
The following countries have not seen any positive upswing during the 2009-2010 year-on-year survey.
Many industry observers speculate that the worst is not over yet, despite the figures indicating otherwise. There is no doubt that the GFC has rattled a many housing markets and that for them, the only way is up. How long this will take is entirely any one’s guess. What do you think?
This post was submitted by William. William writes about real estate and personal finance for a mortgage comparison site offering a range of financial products and property advice for first home buyers.