Property owners in the US may have been hit hard if they planned to sell their home in the last 12 months, yet it may be better news for people looking to get into the rental market. That’s because UK-based firm Knight Frank revealed in its Global House Price Index that the US was harder-hit than most other countries, registering an average house price drop of 3.9 per cent.
Nonetheless, it’s opened up a fantastic opportunity for people toying with getting Simple’s landlord home insurance and making the most of this chance to extend a house or apartment portfolio. Other countries were also hit particularly hard – some evidently suffering the pains of the credit crunch.
The newly-released data from Knight Frank, which has been tracking the performance of housing markets around the world for a number of years, underlined how there was very little in the way of growth; there was a relatively meagre 1.5 per cent overall rise in property prices that signalled the industry’s weakest performance since the quarter between March and June of 2009, when the recession was in full swing.
The Eurozone crisis was evidently behind a lot of the market cynicism, and this was reflected in certain markets that experienced plummeting housing prices. Ireland took a real blow and suffered an annual fall of over 14 per cent. Other markets tied to Europe also fell by large amounts, such as Cyprus (-6.6 per cent) and Spain (-5.5 per cent). Russian investors were also cynical and this led to the market falling by 10.4 per cent, while nearby Ukraine slid by 8.4 per cent.
This negative trend was certainly not felt everywhere, however. For instance, Hong Kong – which topped the table – saw a house price rise of a whopping 19.3 per cent, while Estonia – a surprising number two by most accounts – was up 14 per cent. India experienced a 13.9 per cent rise and Chinese semi-autonomous republic Taiwan saw the fruits of its industrial labours, rising 12.7 per cent; China itself jumped by 8.9 per cent.
Other notable countries of growth included Hugo Chavez’s Colombia (up 7.6 per cent), Norway (8.3 per cent) and a raft of other countries in the Far East – Indonesia, Singapore and Malaysia all saw house prices climb by over four per cent. This exact figure also represented growth in Canada, the US’ northern neighbour, which was not as affected by socio-political pressures on housing costs as its friends to the south.