_Asia-Pacific is ahead of the curve with regards to the slowdown of house prices.

The global housing market did not experience a notable slowdown in terms of the index’s overall performance and in relation to the number of countries seeing house prices decline in annual terms as expected. However, this is not the case for Asia-Pacific. Discover the impact of inflation on global house prices and delve deeper into the breakdown of the Asia-Pacific residential landscape through Knight Frank’s Global House Price Index Q2 2022.

September 22, 2022

08 September 2022, Singapore

Singapore – Knight Frank has released its Global House Price Index for Q2 2022. This report tracks the movement of average residential prices across 56 countries and territories worldwide using global official statistics. The index tracks nominal prices in local currencies.

“Although the global picture in nominal terms is one of relative resilience, there are signs Asia-Pacific is ahead of the curve when it comes to the slowdown into a more sustainable trajectory. Of the seven markets that saw prices decline between March and June 2022, six are in the Asia Pacific region: Hong Kong, South Korea, the Chinese Mainland, Australia, Malaysia, and New Zealand. New Zealand has seen the biggest decline with prices down 3% on a 3-month basis. New responsible lending laws and seven rate rises since October 2021 have shifted buyer sentiment, from a fear of missing out to a fear of overpaying. Rate of prices slowing down and normalising offers a more sustainable backdrop for growth in most markets moving forward as large parts of the world move to a post-pandemic landscape coupled with inflation, rising taxes, and more property regulations,” shares Victoria Garrett, head of residential, Asia-Pacific.

“It serves to note that in most of the region’s markets that have registered declines through the second quarter, authorities there have implemented macro-prudential measures to curb demand and rein in housing prices. South Korea and New Zealand were also ahead of the curve globally to raise policy rates. The impact of interest rate hikes is thus just part of the story as there have been explicit policies to maintain a sustainable property market. The deceleration reflects the success of these measures, rather than a sign that demand is waning. Housing markets in the region will continue to remain broadly characterised by strong latent demand, underpinned by robust home ownership aspirations, and constrained supply,” adds Christine Li, head of research, Asia-Pacific.

Key highlights of The Global House Price Index (GHPI)

- Out of 56 countries and territories tracked, 51 registered an increase in house prices in the year to Q2 2022.

- The number of markets where prices declined in the latest 3-month period stands at 7.

- Of the seven markets that saw prices decline between March and June 2022, six are in the Asia-Pacific region.

- The six markets include Hong Kong, South Korea, the Chinese mainland, Australia, Malaysia, and New Zealand.

To download the report, please click here.