_Australia tops Global House Price Index for 2021

The Global House Price Index tracks the movement of average residential prices across 56 countries and territories worldwide. The index tracks nominal and real price growth in local currencies.

Globally, house prices increased by 10.3% on average in 2021. Australia has clocked the highest rate of annual price growth in the year to Q4 2021 with real price growth of 17.5%.

Commenting on the Report, Knight Frank Australia Head of Residential Research, Michelle Ciesielski said: “With compounded savings throughout the pandemic in what is still a relatively low interest rate environment, the stability of residential property as safe haven continues to appeal and is one of the reasons why Australia has seen significant growth in values over the past year.

“We’ve now reached a point where the Australian housing market has become fatigued after riding significant growth in values on the back of an economic rebound, and is now be grappling again with global uncertainty, a natural disaster and an upcoming federal election.

“We can’t ignore the fact that we are facing a rental crisis in our cities and regional areas of Australia, with delayed construction in what has already been a diminishing pipeline of newly built homes, a lower number of local and international investors adding to the rental pool, and a likely increase in the skilled migrant population who also increase the demand for rental properties.

“So despite the economic headwinds on the horizon, the current imbalance between demand and supply in Australia’s mainstream residential markets for at least the next three years, could result in further growth in prices of up to 8% by the year’s end.”

For more information, please contact:

Michelle Ciesielski
Partner, Head of Residential Research, Australia
+61 414 694 220
Email Michelle