Australia is leading the global recovery in residential property prices, according to research from Knight Frank.
The latest Global House Price Index shows house prices are beginning to stabilise across the globe, with an increase in value recorded for the second quarter of 2009 for almost half of all the locations that reported price changes.
Knight Frank’s head of residential research Liam Bailey said while quarterly price falls accelerated in 22 per cent of the locations, they did not exceed 10 per cent in any country.
“This compares with double-digit falls in a number of locations during the March quarter,” Mr Bailey said.
In Australia, prices fell 1.4 per cent over the financial year, but the turnaround from the March quarter to June was 4.2 per cent – the second highest rise in the world.
It seems the combined effects of constrained supply, low interest rates and soaring business confidence have worked in the Australian residential market’s favour.
“Overall, it seems that prices are starting to bottom out around the world. However, the market is still fragile and patchy.
“Further falls are always a possibility while credit flows remain constrained and the global economy struggles to recover from recession, but it does appear that the worst is behind us,” Mr Bailey said.