Ireland is eighth-biggest loser
Published 06/01/2010 | 05:00
Irish house prices suffered the eighth sharpest fall in the world during the 12 months to September 2009. Meanwhile, 17 countries, most notably Israel, have recorded house price rises over the period.
According to the latest Knight Frank global survey, house prices are now rising in a majority of locations around the world -- with 28 of the 42 countries surveyed reporting growth in the third quarter of 2009.
Israel remains the best performer on an annual basis and is the only country to have recorded double-digit (13.7pc) growth during the 12 months.
Prices in Dubai have fallen the most (47pc), despite posting a small recovery (1.2pc) in the third quarter.
However, Dubai's nascent rally is already under threat following the more recent revelation of the scale of its debt issues.
Liam Bailey, head of residential research, Knight Frank, said that European countries yet to record their first quarter of growth since the credit crunch included Spain, Denmark and Ireland -- where oversupply is holding back prices.
The survey shows that Irish prices are down 13.1pc and Spanish prices are down 8pc over the 12 months.
Knight Frank's Irish index is based on the PTSB index but an alternative and more recent survey compiled by estate agents Sherry FitzGerald has recorded that Irish prices fell by an even greater 20.2pc during the full 12 months of 2009.
Sherry FitzGerald also says that Irish prices are beginning to stabilise after falling 40.2pc from their 2006 peak.
Knight Frank reports the UK market has seen prices rise strongly due to a shortage of houses for sale and demand outstripping supply.
Consequently, its fall over the 12 months to September was pared back to 3.1pc.
Other locations where growth is accelerating include Austria (up 9.7pc) and Australia up 6.2pc.
Many Asian economies are also performing strongly with quarterly growth of 6pc in Hong Kong and 2.5pc in mainland China.
Q3 figures are unavailable for India, but prices were already rising in Q2 and that trend looks set to continue.
According to the survey two countries where many Irish people invested in holiday homes are among the seven that have suffered sharper falls than Ireland.
These are Bulgaria, down 28pc, and Thailand down 18.4pc over 12 months
Some of those countries showing strong third-quarter growth have yet to wipe out their earlier prices falls.
For instance, Singapore prices rose 15pc in Q3 but they are still down 14.5pc over the 12 months.