During the year to Q1 2018:
- House prices rose in 31 out of the 42 world’s housing markets which have so far published housing statistics. House prices fell in 10 countries.
- The more upbeat nominal figures, more familiar to the public, showed house price rises in 35 countries, and declines in 7 countries.
- Slightly more than half of the surveyed housing markets showed weaker momentum during the year to Q1 2018 compared to the previous year, suggesting that the boom may be moderating.
The strongest housing markets in our global house price survey during the year to Q1 2018 included: Macau (+20.58%), Puerto Rico (+12.55%), Ireland (+12.51%), Hong Kong (+11.79%), and Egypt (+11.45%), using inflation-adjusted figures.
Momentum. Only 20 of the world’s housing markets for which figures are available showed stronger upward momentum during the year to Q1 2018, while 22 housing markets showed weaker momentum.
Europe remains vibrant
European house price rises continue unabated. House prices have risen in no less than 15 of the 21 European housing markets for which figures were available during the year to Q1 2018.
Ireland has been the best performer in Europe, buoyed by its very strong economy. Residential property prices were up by 12.51% during the year to Q1 2018, after y-o-y rises of 11.7% in Q4 2017, 11.75% in Q3, 11.8% in Q2, and 9% in Q1. During the latest quarter, Irish house prices increased 1.38% (Q1 2018). Ireland’s surging house prices are mainly driven by strong demand as well as supply shortages. The Irish economy grew by around 7.3% last year and is projected to expand by another 5.7% this year.
Iceland‘s house prices are soaring, amidst continued increases in demand fuelled by booming tourism. Nationwide house prices rose by 10.14% during the year to Q1 2018, after y-o-y growth of 15.98% during the same period last year. Quarter-on-quarter, house prices increased 2% in Q1 2018.