Recording property price growth of more than 8 per cent in the last six months alone, Australia has found itself among the top 20 nations for growth in house prices over the year.
Knight Frank’s latest Global House Price Index recorded an average 7.3 per cent change in prices across 56 countries and territories in the year to March 2021.
The latest ranking, which paints a global picture of changing property values, also revealed that house prices are rising at their fastest rate since Q4 2006.
Turkey led the charge for the fifth consecutive quarter with a 32 per cent growth, followed by New Zealand with 22.1 per cent.
Australia came in at 18th over a 12-month period, posting an annual growth rate of 8.3 per cent, and putting the country on par with Denmark.
Over the last six months alone, Australian house prices grew a whopping 8.7 per cent — clawing back COVID-19 losses and then some, and earning us the fourth fastest growth rate over that six-month period.
This placed Australia only behind Lithuania (23.4 per cent), New Zealand (15.3 per cent) and Turkey (12.8 per cent) for the half-year.
According to Knight Frank’s head of residential research, Michelle Ciesielski, Australia has been “faring much better than many other countries and territories which experienced stricter lockdowns”.
Knight Frank reported Perth, Sydney and Canberra as leading the charge.
“The last time Australia’s mainstream market saw double-digit growth was in September 2017 with 10.2 per cent,” Ms Ciesielski added.
“Australia is on the verge of reaching this status once again, with the cities dominating Australia’s price growth of Perth, Sydney and Canberra likely to each record double-digit growth by the end of the year.”
The researcher pointed to the improved stability of the Australian property market as many buyers reach their borrowing capacity under the responsible lending regime or simply get priced out of the major capital city markets.
Looking ahead, she said the increase in investor activity, low mortgage rates and improving economy would be fueling the continued growth of the market.
“Although we need to be mindful we’re only days into the winter season, there is enough fuel for house price growth to be fired up again in the spring selling season by investors returning to the market, encouraged by low mortgage lending rates, three more months of savings and a strengthening economy.”
Other countries to make Knight Frank’s top 20 list of highest annual price growth in the 12 months to Q1 2021 were: Luxembourg (16.6 per cent), Slovakia (15.5 per cent), United States (13.2 per cent), Sweden (13 per cent), Austria (12.3 per cent), Netherlands (11.3 per cent), Russia (11.1 per cent), Norway (10.9 per cent), Canada (10.8 per cent), United Kingdom (10.2 per cent), Peru (10 per cent), Lithuania (9.1 per cent), Czech Republic (8.9 per cent), Poland (8.9 per cent), Iceland (8.5 per cent) and Germany (8.1 per cent).