_Australia ranks 47th globally with 1.5% annual price growth.

The Global House Price Index tracks the movement of average residential prices across 56 countries and territories worldwide. 

Global House Price Index key findings:

• House prices across 56 countries and territories are still rising at a rate of 8.8% per annum, down from 10.9% at their peak in Q1 2022.
• Markets that have seen the largest jump in interest rates are sliding down the rankings table. Australia has moved from 28th to 47th place in the last three months.
• Australia’s annual percentage change in nominal terms for Q3 2022 was 1.5%, or -5.4% real price growth (adjusted for inflation).

When accounting for inflation, research found that house prices are now declining by 0.3% year-on-year. However, forty-eight of the 56 countries and territories tracked by the index are still registering price growth on an annual basis.

There was a -174bps difference between Australia’s annual price growth in Q3 2022 (1.5%) and Q3 2021 (18.9%).

Commenting on the Report, Knight Frank Australia Head of Residential Research, Michelle Ciesielski said: “Current expectations are for the RBA to resume cutting the cash rate in 2024, and this should see every capital city back on track with a positive capital growth trajectory as population growth returns to pre-pandemic levels and new residential stock remains in short supply."

Erin van Tuil, Knight Frank’s Head of Residential, said: "Off the back of strong rental growth, the gross rental yield for Sydney residential homes rose the most of all cities over the past six months, up by 29 bps to now trend north of 3 percent. With further rental growth expected, rental yields for investors will continue to shift up over the next 12 months and this will help restore residential investor demand and, over time, boost the development pipeline.”

For more information, please contact:

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