The pace of global residential property price inflation picked up at the end of 2016, with values finishing the year 6% higher than they started – compared to +4.1% in 2015 – to deliver the highest annual rate recorded by Knight Frank’s Global House Price Index since the first quarter of 2014.
Iceland tops the price growth table for the first time since KF started collating such data (back in 2006), with prices up 14.7% year-on-year, as long-term front-runners Turkey (12.2%) and Sweden (6.1%) both saw their rate of annual growth dip. As a result, the shape of the Index rankings is rather different to how it looked at this time last year, at least at the top-end. Turkey and Sweden have slipped down from 1st and 3rd position in 2015, to 5th and 20th respectively in 2016.
China’s been a big performer over the last year or say, jumping from 43rd position in the rankings in 2015 to 7th in 2016; average prices in China are now increasing by 10.8% a year, according to the country’s National Bureau of Statistics – although as you’d expect there is some significant regional variation.
The United States has seen price growth rise a bit, reaching +5.8% in 2016, while the UK’s annual change has drifted down to +4.6%.
Russia and the CIS (-3.4%) is the only world region where prices declined in 2016.