Malaysia’s house price hikes steeper than US, UK
KUALA LUMPUR – The increase of house prices in Malaysia in the second quarter this year was among the highest in the world, topping the US, UK, Hong Kong or Singapore, a Knight Frank study has revealed.
In comparison with the same period last year, Malaysia, which was ranked 12th highest, recorded an increase of 7.2 per cent while, the UK and US followed a similar trend with prices rising by 5.2 per cent and 5.1 per cent respectively.
According to Knight Frank’s Global House Price Index, house prices fell in Hong Kong, Taiwan and Singapore that occupied three of the bottom five ranking among 55 countries.
While Turkey topped the list by the independent global property consultancy, its annual rate of house price growth slipped from 19 per cent to 13.9 per cent.
“Of our top five performing countries, Turkey and Sweden are the only two markets where price growth has slowed compared with last quarter, down from 19 per cent to 14 per cent and from 13 per cent to nine per cent respectively.
“Our index tracks nominal price growth but if we consider real price growth, where inflation is stripped out, New Zealand finds itself in first place with 11 per cent annual growth while Turkey — with inflation in excess of seven per cent — is pushed down into 13th position,” it said in a statement.
Knight Frank’s Asia Pacific Head of Research Nicholas Holt explained that the impact by policy makers, both regionally and globally, has played an important factor in this quarter’s price index.
“With the highest real price growth, New Zealand is set to see new lending restrictions introduced from October, 1; while at the other end of the index, cooling measures introduced over the last few years in Hong Kong, Taiwan and Singapore continue to bite,” he said.
He cited New Zealand’s newly implemented lending restrictions as an example that would have some ease on the increase in housing prices in times to come.
The Knight Frank Global House Price Index allows investors and developers to monitor and compare the performance of residential markets around the world.
The index by the independent global property consultancy is compiled on a quarterly basis using official government statistics or central bank data where available. – Malay Mail