house price growth

Australia earns top 20 ranking in the world for house price growth, despite coronavirus crisis

PHOTO: Melbourne’s property market is still shut down because of the coronavirus pandemic. Photo: iStock

Australia’s property market is still ranked in the top 20 in the world, despite any damage inflicted on it by the coronavirus pandemic.

Out of 56 countries and territories in the global index’s second quarter analysis produced by independent property consultancy and real estate agency Knight Frank, Australia ranked 19th, recording house price growth of 6.1 per cent over the 12 months to June this year.

It’s a massive improvement on last year’s June result, which saw Australia record negative growth of -7.4 per cent, scraping in at last place.

Earlier this year in the March quarter, booming Sydney and Melbourne real estate saw Australia’s housing market skyrocket up the rankings to be placed 10th in the world.

But after price growth dropped by 2 per cent between April and June due to coronavirus-related market shutdowns during those months, Australia slipped down the ranks to land on 19th place by the end of the June quarter.

According to Knight Frank’s head of residential research Australia Michelle Ciesielski, it’s likely the ranking will fall further, with Melbourne’s property prices expected to take a hit as the local market remains closed through the usually busy spring auction season.

Ms Ciesielski said the pandemic had not only impacted on property price growth, but also the amount of data that could be collected, with only 29 of the 56 countries reporting results during the second quarter of 2020.

“Despite this, the data still offers a glimpse into the impact of COVID-19, with a number of countries and territories seeing a decline in prices increasing again,” Ms Ciesielski said.

Global House Price Index Quarter 2, 2020

COUNTRY/TERRITORY 12 MONTH % CHANGE (Q2,2019-Q2,2020) 6 MONTH % CHANGE (Q4,2019 – Q2,2020) 3 MONTH % CHANGE (Q1,2020 – Q2,2020)
Turkey  25.7%  17.4%  11.2%
Luxembourg  13.9%  6%  3.8%
Lithuania  12.4%  -1.6%  -6.6%
Estonia  11.5%  7.8%  4.8%
Poland  11.3%  6.6%  3.6%
Slovakia  11.2%  8.4%  3.6%
Ukraine  11.2%  2.4%  0%
Czech Republic  9.5%  4.7%  2.6%
Latvia  9.1%  1.2%  1.1%
Croatia  9.1%  5.7%  2.7%
New Zealand  9.1%  1.6%  -4.1%
Portugal  8.3%  2.2%  0.5%
Romania  8.1%  4.9%  3.3%
Russia  8.1%  5.8%  1.4%
Netherlands  7.6%  4.5%  1.9%
Greece  6.9%  2.5%  2%
Germany  6.8%  2.7%  0.3%
Iceland  6.7%  3.4%  1.5%
Australia  6.1%  -0.4%  -2%
Canada  5.9%  4.3%  3.2%
Source: Knight Frank. Countries and territories are ranked across the 12 months to June, 2020.