Norway also achieved healthy growth of 7.65% year-on-year, thanks to a massive stimulus package and low interest rates. Luxembourg was not far behind with house prices climbing by 6.63% over the same period fuelled by low interest rates. The UK recorded a 5.43% increase in house prices, while Germany and France recorded a smaller gain of just 0.5%.
“The global housing bust is effectively over,” said the report.
The Global Property Guide's statistical presentation uses price changes after inflation, giving a more realistic picture than the more upbeat nominal figures usually preferred by real estate agents.
Looking at Asia, the stronger-than-expected rebound in property prices in Hong Kong, Singapore and Taiwan are stoking fears of a housing bubble forming in the region.
Hong Kong surged by 27.15% after inflation – the highest house price increase among all countries surveyed.
“This is a remarkable performance, considering that during the same period a year ago Hong Kong suffered a painful year-on-year drop of 15%,” the report noted. “Analysts have expressed concern, and there is a lot of very un-Hong Kong-like outrage at ‘speculators’.”
The same concerns affect Singapore, according to the Global Property Guide. After being badly hit by the financial crisis, Singapore house prices increased by 23.88% year-on-year to the end of the first quarter. This came after falling 22.7% during the same period last year.
Taiwan's house prices rose 18.46% year-on-year to the first quarter of 2010 – the highest increase ever recorded in the country. This was boosted by an influx of buyers from mainland China after financial cooperation agreements were signed between China and Taiwan.
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