Home prices in Singapore fell by 2.4 % quarter two 2016 in comparison to a similar period last year. This placed it with other worst performers including Taiwan and Hong Kong as revealed by Global House Price Index from Knight Frank.
Knight Frank added that the drop in home prices was caused by slowed home sales in Asian markets due to the property cooling measures, weak economic growth and strong US dollar.
Turkey was the top performer with a price increase of 13.9 % and New Zealand came second with 11.2 %. The third position went to Canada, the fourth position to Chile and Sweden came fifth. Others countries in the top ten were Malta at position six, Austria at seventh position, Iceland at position eight , Mexico at ninth position and Germany at position ten.
The Knight Frank’s aggregate price index has consistently grown at 4 % in the previous two years.
“After close inspection of the index, there is moderation of extremes since the percentage points between the strongest and the weakest home markets has reduced from 33 points in Q3 2015 to 23 points in Q2 2016”, said Knight Frank.
Knight Frank added that of the top 5 countries, only Turkey and Sweden recorded slowed price growth in comparison to the last quarter. Turkey’s price reduced from 19% to 14% while that of Sweden dropped from 13 % to 9 %.
Knight Frank further revealed that the house price index tracked growth in nominal prices. However, if real growth in prices is considered by stripping out inflation, then New Zealand would take the first position with an annual growth of 11 %. Turkey whose inflation is above 7 % would be further down to position 13. This shows that inflation in different countries would have an effect on the real change of price.