International News Research

Global house prices continue to rise

Wellington, New Zealand

Global housing markets have caught the real estate industry off guard during Q2 2022. With the expectation of a slowdown, both in terms of the Knight Frank Global House Price Index’s overall performance, which tracks the movement of average residential prices across 56 countries and territories, and in relation to the number of countries seeing house price declines in annual terms, neither have materialised.

The overall index is still rising at 10% per annum, down only marginally from 10.9% last quarter.

Plus, 51 of the 56 countries and territories tracked continue to register an increase in house prices on an annual basis despite the ‘clouds’ on the economic horizon.

Even when reviewing data from the past three months, that figure only drops to 49 of the 56 markets.

As expected in real terms, markets are feeling the pinch. When taking inflation into account, house prices in real terms are averaging just 1.6% growth in the year to Q2 2022, down from 6.2% a year earlier.

Asia Pacific

Although the global picture, in nominal terms, is one of relative resilience, there are signs that the Asia Pacific region is ahead of the curve when it comes to the slowdown. Of the seven markets that saw prices decline between March and June 2022, six are in the Asia Pacific region: Hong Kong, South Korea, Chinese mainland, Australia, Malaysia, and New Zealand.

New Zealand has seen the biggest decline with prices down 3% on a three-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.


Central and Eastern European countries are still performing strongly despite the proximity of the Ukraine crisis. Slovakia (26%), Czech Republic (24%), Estonia (21%), Hungary (20%), Latvia (17%) and Slovenia (17%) all sit within the top ten this quarter.


Turkey’s triple-digit annual growth of 161% can largely be ignored with inflation at a 24-year high of almost 80% and with interest rates heading south, this figure may increase.

The US housing market is resilient, in sixth place with 21% annual growth, but a slowdown is on the cards. Higher mortgage rates led to another fall in existing home sales in July, which are now down by 26% from their peak in January 2022.

South Africa ranks #47 in the table below: