AFTER years of dizzying ascents, a big dose of gravity has hit residential-property markets around the world.
According to The Economist‘s latest round-up, year-on-year prices are now falling in 12 of the 21 countries they track; in five of the other nine, prices are rising at a slower rate than they were a year ago.
If you’ve been following my blogs you’ll know I don’t necessarily agree with the Economist’s assessment of Australian property – they’ve been predicting a bubble that’s going to burst for years – but the graph is cool and worth fiddling with.
The interactive tool above (you need to go to the website to play with this) enables you to compare nominal and real house prices across 20 markets over time.
While the woes of European and American housing markets are very familiar; the graph shows that the once-frothy Asian markets are also now subdued.
Prices in Hong Kong are rising at a manageable 6% a year, as opposed to 28% a year just 12 months ago
Chinese prices fell year-on-year for the fifth month in a row in June. Indeed, so subdued is residential property at the moment that the list of the world’s bounciest markets has an unusually Germanic flavour, with Austria, Switzerland and Germany all posting appreciable gains.
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