Housing markets around the world are showing signs of recovery, according to the latest survey of worldwide house price indices prepared by the Global Property Guide. The Guide suggests that seven countries have emerged from the house price slump. Howevermost countries suffered sharp house price falls during the year to the end of the second quarter (Q2) 2009, so the general situation remains negative.
After experiencing declines in 2008, house prices rebounded in China, Portugal, Australia, New Zealand, France, Sweden and Hong Kong during the latest reported quarter, Q2 2009. These seven countries joined Israel, Switzerland, Indonesia and Norway (countries which had recovered ahead, that is, before Q2 2009) in the list of countries in recovery.
In Shanghai, China, house prices were up 1.96% during the year to end Q2 2009. These gains occurred entirely during Q2 2009, when Shanghai's house prices rose 2.09 per cent. China's house prices started falling in the last quarter of 2008, but a strong increase in government spending revived both the housing market and the economy, which has seen 7.1 per cent GDP growth during the first half of 2009. Chinese property prices are now widely expected to increase further.
Average house prices in Algarve, Portugal, at €1,429 per square metre, were up by 2% during Q2 2009. House prices in Portugal as a whole rose 1.01 per cent during Q2, and were down only 0.43% on the year to end-Q2 2009, compared to -7.24% during the year to end Q2 2008. New construction orders in Portugal increased 12.3 per cent during Q2 2009.
Australia and New Zealand saw house price increases of 3.73% and 2.21% respectively during Q2 2009. All regional capital cities in Australia registered quarterly house price increases, ranging from 2 to 5 per cent. However, over the year to Q2 2009, there was a price decline of 2.80% in Australia.
In New Zealand, the annual change is still negative at -3.07 per cent in the year to end Q2 2009. But in July 2009, New Zealand had the first yearly house price increase since 2008.
The Guide reported that the International Monetary Fund has declared that global recovery has started.
"The three big economies of Japan, France and Germany have recently exited from recession, while the emerging economies of Asia have revived, with China leading the pack. "Whether this recovery will be sustained is the big question", it concluded.
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