Citation
(2009), "International Housing Data", International Journal of Housing Markets and Analysis, Vol. 2 No. 4. https://doi.org/10.1108/ijhma.2009.35102dab.001
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited
International Housing Data
Article Type: International Housing Data From: International Journal of Housing Markets and Analysis, Volume 2, Issue 4.
The aim of this section is to provide a broad overview of relevant housing market trends in individual countries. This issue commences with a global house price index and focuses on house price trends in Spain and Australia. The International Journal of Housing Markets and Analysis includes this unique insight to increase interest in international housing markets and to encourage further analysis. Feedback and requests for specific country coverage can be forwarded to the editor, Professor Richard Reed (richard.reed@deakin.edu.au).
Table I Global house price index
Table I highlights the large variance in house price changes from a global perspective, where there have been both extreme price decreases at the same time as modest house price increases. The largest decreases were Latvia (36 per cent), Dubai (32 per cent), Singapore (23.8 per cent), US (16.9 per cent), and the UK (16.5 per cent). However, at the other end of the scale the largest increases were linked to Israel (10.9 per cent), Czech Republic (9.9 per cent), Jersey (6.9 per cent), Switzerland (5.6 per cent), and India (5.1 per cent).
Figure 1 highlights the location of different countries with relation to changes in their house prices. The largest increases were associated with Israel, Switzerland, and the Czech Republic which all have comparatively small geographical areas. In comparison most of the larger countries experienced only a slight fall in value, with the exception of Latvia.
Figure 2 confirms that house prices have increased over the long-term. Even though there has been an adjustment since May 2007 the level of house prices between May 2001 and May 2009 has doubled in relative terms. On a year-by-year basis (Figure 3) there was consistent 15 per cent per annum growth between May 2001 and May 2006 although this bubble burst in May 2006. By May 2009 the house prices had decreased by 10 per cent over the preceding year, equating to a difference of 25 per cent per annum in comparison to the earlier increases of 25 per cent per year.
House prices in Australia's eight major capital cities between March 2009 and March 2009 have changed from modest quarterly increases to slight decreases in the last four quarters (see Figure 4). However, a closer analysis reveals some of the differences between each capital city market which is commonplace in some countries which are affected by factors such as different unemployment rates and rental market variances. Examining the differences between the 12 August-3 September quarter and the 3 August-3 September year there was a marked decreases in house prices in Perth (decreasing from 3.6 per cent to 10.1 per cent) at the same time as an increase in Darwin (2.2 per cent to 10.8 per cent). The differences are also highlighted in Figure 5 where house prices remain unchanged. These data support the global price index (Table I) where the current market climate has seen a broad re-adjustment of house prices in different markets at varying levels. It is incorrect to comment that house prices have decreased with certain markets have shown an increase of at least 10 per cent over the past year. Clearly further housing market analysis is required.
References
ABS (2009), “House price indexes: eight capital cities”, March, available at: www.abs.gov.au (accessed 1 July 2009).Imie (2009), “TINSA house price index”, May, available at: http://prices.kyero.com/ (accessed 1 July 2009).Knight Frank (2009), “Residential research international market update”, June, available at: www.knightfrank.co.uk/residential/research/ (accessed 1 July 2009).