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Global House Price Index Surges To Record High

Tyler Durden's picture


With home prices in the UK driving people to live in boxes and Bob Shiller worried about the US, Bloomberg's Niraj Shah notes that the Knight Frank global house price index has risen to a record. The index, now 4% above the previous high in Q3 2008 is led by China and Emerging Nations (with Europe weakest) as investor speculation amid central bank liquidity fuels yet another bubble (that no one could see coming again).


Via Bloomberg's Niraj Shah (@economistniraj),

Record High for Global Index

Global house prices are gaining traction. Values rose an annual 4.6 percent in the third quarter compared with 1.7 percent in the same period in 2012, and the index is 12.7 percent above its financial-crisis low in 2009. Prices in more than 69 percent of the countries tracked by the index grew in the year through September, compared with 55 percent two years ago. The Knight Frank index incorporates house prices in 53 countries.

China, Emerging Countries Lead Price Growth

Prices in China rose the most, gaining 21.6 percent. Emerging economies made up the rest of the top five, with Taiwan, Indonesia, Turkey and Brazil recording price growth of more than 10 percent. The U.S., the biggest housing market, grew an annual 11.2 percent. The only countries outside Europe to experience declines were Japan, South Korea and New Zealand. Dubai recorded the largest growth rate for a city with 28.5 percent.

Europe Remains Weakest Region

While average values rose in every region, European property prices were the weakest performers in the year through October. Prices increased 0.8 percent in Europe, compared with 17.9 percent in the Middle East. Fourteen of the 17 countries experiencing annual price declines were in Europe. Average prices in Europe resumed growth in the second quarter.

European Prices Diverge

There is a widening divergence between countries in Europe. Annual house prices in Germany rose the most in the third quarter — 11.2 percent — while prices plunged 19.7 percent in Croatia over the same period. Ireland achieved the biggest turnaround, with values rising 4 percent in the three months through September. Property values were falling at a rate of 5.4 percent each quarter less than two years ago.


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Thu, 12/12/2013 - 15:41 | Link to Comment Occident Mortal
Occident Mortal's picture

If you take London and it's isofreight homes and Arab oligarchs out of the Europe data it will be even worse.

Thu, 12/12/2013 - 17:46 | Link to Comment knukles
knukles's picture

Well, they sure as hell didn't have my abode in the calculations and I don't live in a shit load wealthy area, either, so who's getting the juice?

Ya' know, sometimes the propaganda can backfire.
Like this
Not my house, ass hole!

Thu, 12/12/2013 - 15:45 | Link to Comment AmericasCicero
AmericasCicero's picture

Those London boxes look more attractive by the day.  Can I drop one of those on the national mall to live in?

Thu, 12/12/2013 - 15:45 | Link to Comment Jack Burton
Jack Burton's picture

The Uk. Wages down. Unemployment up. Payscales falling. Savings hitting all time lows. Yet house prices are in sky rocket mode. Go figure!

Bank of England and Government manipulation of interest rates and "help to buy" schemes are fueling a bubble. It will explode, and as Steve Keen points out, the UK is in a major bubble. When she blows, the people will again be smashed by the bankers. All this house price inflation is designed to make banks balance sheets look good. After all, it is banks holding all these mortgages, and the higher the equity in them, the higher the banks books look.

It's a fucking joke, a manipulated banker designed fuck up. Britain is toast.

Thu, 12/12/2013 - 15:49 | Link to Comment Tinky
Tinky's picture

Ah, Jack, you must be a glass-half-empty kinda guy. You see, from my perspective, if a country is destined to be "toast", what better one to live in than the one well known for its excellent tea?

Thu, 12/12/2013 - 15:58 | Link to Comment falak pema
falak pema's picture

As long as the butter and foie gras are french; like the London whale, it takes a devious frenchy to put spice into english tepid beer. A touch of french decadence  "parce que vous le valez bien !"


Thu, 12/12/2013 - 16:12 | Link to Comment irishlink
irishlink's picture

Looks awfully familiar. Money running out of one country into another. Also some people so afraid to leave anything in the bank due to bail - ins and the prospect of future inflation are buying Hard Assets. Fear driving everything......Not a good place .

Thu, 12/12/2013 - 16:10 | Link to Comment giggler321
giggler321's picture

Hey Tinky, so your one of those cup-of-tea-half-full guys?  you can have your tea, toast and drink it in your bin liner home if you like for £75 a week, fine with me.

Thu, 12/12/2013 - 23:17 | Link to Comment Jack Burton
Jack Burton's picture

You have found me out Tinky! But I agree, If I am to go under as toast, there is no nation, no people, no culture I would rather go down with. I nice day of walking in the Lake District for me, makes all the financial fucks ups worth it. But I am American, and soon enough I have to catch a plane and fly back to by wage slavery. Anyone got a spare passport?

Thu, 12/12/2013 - 16:43 | Link to Comment Oldwood
Oldwood's picture

Fewer people can afford them yet the price goes up, indicating to me that the rich are buying them up and likely using them for rentals. Centralized governments want control...need control, and that does not harmonize with personal property ownership. If they and their wealthy brethren own all of it then everyone else are renters. They will strip away all private ownership except for the very few at the top, basically eliminating the right to private property, not by law but by economics. They do not need to change laws or constitutions to create the tyranny they desire, all they need to do is make tyranny the only "affordable" alternative. It is for us to choose slavery as the only viable alternative in survival. Just like the "Affordable Care Act" ACA, or Obamacare as we lovingly refer to it. The choices are those made available to us.

Thu, 12/12/2013 - 17:48 | Link to Comment Harbanger
Harbanger's picture

Interestingly, Global currency debasement is also at a record high.  Any connection?

Thu, 12/12/2013 - 15:47 | Link to Comment hangemhigh77
hangemhigh77's picture

Yeah flip that house to a hedge fund manager or a WalMart employee.  Print Ben PRINT!!!!  Keep housing going up so we can have more adult children living in their parents basements.  WHEN ARE WE GOING TO START HANGING THESE MOTHERFUKERS???

Thu, 12/12/2013 - 15:55 | Link to Comment The Heart
The Heart's picture


Hey yo, Hangem!

The old grayed vulture says to the younger vulture as they are looking down on the hanging banksters dangling away into the next world, "patients my son, I'm gonna to kill something."

(note to WB7, can you depict these vultures and the long line of hanging banksters scene fading into the sundown?)

Thu, 12/12/2013 - 16:01 | Link to Comment falak pema
falak pema's picture

never have so few had  it so good thanks to so many slaves, since Edward III launched the 100 years war all financed by the Italian merchant banks; whom he never repaid refusing to pay the bank of Bardi and Perruzi. 

Perifidious Albion: Honi soit qui mal y pense... became honi soit qui mal y paye! 

Wars, bankruptcies, royal lies and serfdom which fries. 

History of banking - Wikipedia, the free encyclopedia

Honi soit qui mal y pense - Wikipedia, the free encyclopedia

At the rate which this regression takes we will soon be all singing to the Windsors : 

"Dieu et mon droit" invented by Henry II ! First Plantagenet royal! 

When the velvet revolution goes back to royal profusion. 

Thu, 12/12/2013 - 18:43 | Link to Comment MummyFunster
MummyFunster's picture

Yep.  Indeed!  Worry about anything written in Latin.  It's usually taking the p155 out of the masses.

Thu, 12/12/2013 - 15:52 | Link to Comment IREN Colorado
IREN Colorado's picture

"...It will get out of control and we'll be lucky to live through it...." Admiral Josh Painter (Hunt for Red October)

Thu, 12/12/2013 - 18:54 | Link to Comment MummyFunster
MummyFunster's picture

Global surge, global high... hard physical assets are IN VOGUE.   Errrrrr.... apart from digital Bitcoins.... they're IN VOGUE too!!!!  What a world of intrigue and fickleness!

Thu, 12/12/2013 - 19:24 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Housing is a very stupid process, and these rising prices are rewarding moronic business practices, just like healthcare.

We should have standardized housing parts to a degree that houses could be built in few days.

What if the auto industry operated like housing?  We would have about 500,000 auto companies all building custom parts....

Take the bubble away and crash that stupidly run industry and let the market have at it.

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