House prices tumble across the world in March quarter as Australia's downturn stretches to longest in a decade: Global Property Review
The world’s housing market decline accelerated during the March quarter, with house price falls in 26 countries and house price gains in only 10.
Over the year house prices had fallen in 24 countries of the 36 countries for which house price statistics are available and rose in only 12 countries during the year to the first quarter of 2012, according to the Global Property Guide's latest house price indices survey.
It noted Australian house prices fell for the fifth straight quarter to be down 6.04% from a year earlier, the longest downturn for a decade.
It also noted the borrowing costs in Australia were the highest of major developed nations.
New Zealand house prices climbed by 0.82% over the year to quarter 2012, after falling 4.79% the previous year, the report noted, suggesting NZ sales activity had been strong for the last few months, with volumes at the highest levels since 2007.
The list of 36 countries was topped by the rapid rise of house prices in India (Delhi) and Brazil (Sao Paulo), although their momentum slowed during the latest quarter.
Over the year to quarter 1 2012, Delhi house prices skyrocketed by 24%, though during the last quarter, they fell 0.07%. House prices fell in some other Indian cities like Chennai and Kolkata year-on-year, according to NHB Residex.
In Sao Paulo house prices climbed by 18.7% in the year to the first quarter 2012. During the latest quarter there was a more moderate price rise of 2.57%.
The report recorded housing markets in Asia cooled over the year due to government measures implemented last year. House prices in Hong Kong were up 0.19% on the year, after a rise of 19.8% the previous year.
There were house price falls in Indonesia (-0.13%), Singapore (-1.36%), Tokyo, Japan (-2.64%) and Shanghai, China (-3.68%).
Europe has yet to emerge from the downturn, highlighted by Ireland’s price declines, which GPG described as catastrophic.
“It is disheartening to see more agony, yet the picture really is alarming,” GPG said.
“House prices fell 18.95% year-on-year, contrasting with a decline of 'only' 13.12% during the same period last year.
“Furthermore, house prices were down 5.19% during the latest quarter.
“Tough credit conditions, an oversupply of housing, and weak domestic demand have weighed down the Irish residential property market,” the report said.
The Global Property Guide's statistical presentation uses price changes after inflation, giving a more realistic picture than the more upbeat nominal figures usually preferred by real estate agents.
This article first appeared on Property Observer.