The global housing boom appears to be slowing down.
Parts of the Middle East, Latin America, New Zealand, and parts of Asia saw house prices fall or slow down earlier this year, according a quarterly analysis by Global Property Guide, which compiled and analyzed the property-price performance of the world’s big economies.
We put together a list of the nine markets that saw the biggest house price drops based on year-over-year, inflation-adjusted prices as of the second quarter in 2017, according to Global Property Guide.
“Greece’s decade-long housing market bust is not yet over,” the report from Global Property Guide said, noting that house prices in Athens, the capital, have been falling since 2008.
Home prices in Greece fell 2.53% year-over-year in the second quarter of 2017, after falling by 1.55% in 2016.
The property market in Thailand is starting to slow down.
Home prices in Thailand fell 2.80% year-over-year in the second quarter of 2017, after climbing by 4.29% in 2016.
Note: The data for Thailand is for single-detached homes, which is based on data from the Bank of Thailand. The Global Property Guide notes that the indices have some limitations because the data mostly cover medium to low-end of the housing market and are concentrated mostly on the periphery of central Bangkok and its vicinity.
“Singapore’s housing market is still weak,” the report said, adding that it saw a 15th consecutive quarter of tumbling home prices.
Home prices in Singapore fell 3.23% year-over-year in the second quarter of 2017, after falling by 2.16% in 2016.
6. Ukraine (Kiev)
Ukraine’s housing market continues to slump. Kiev, the capital of Ukraine, saw housing prices fall for a 15th consecutive quarter.
Home prices in Ukraine fell 5.13% year-over-year in the second quarter of 2017, after falling by 2.95% in 2016.
“Egypt remains weak,” the report said, but added that 2017’s drop was an improvement from the previous year.
Home prices in Egypt fell 5.32% year-over-year in the second quarter of 2017, after falling by 11.20% in 2016.
“Macedonia’s housing market continues to struggle, due in part to the country’s extended political crisis, and the impact from problems in neighboring Greece,” the report said, adding that the country’s housing market never recovered from the financial crisis.
Home prices in Macedonia fell 5.99% year-over-year in the second quarter of 2017, after ticking up by 0.84% in 2016.
“Qatar’s housing market is now in trouble, amidst a sharp economic slowdown and the ongoing diplomatic crisis in the region,” the report said. Earlier in June, four Arab nations including Saudi Arabia announced they cut off ties with Qatar, creating potential economic problems for the country.
Home prices in Qatar fell 6.25% year-over-year in the second quarter of 2017, after climbing by 1.75% in 2016.
“Russia remains the weakest housing market in Europe and the second worst performer in our global survey — but things are getting better,” the report said.
Home prices in Russia fell 7.58% year-over-year in the second quarter of 2017 — the smallest drop since 2014 during the oil crash and ruble crisis — after falling by 12.46% in 2016.
1. Puerto Rico
Puerto Rico is “now the weakest housing market in our global house price survey, amidst continued economic woes, high unemployment, massive emigration, and a near-catastrophic national debt crisis and credit rating downgrades,” the report said.
Home prices in Puerto Rico fell 9.59% year-over-year in the second quarter of 2017, after climbing by 3.26% in 2016.
Notably, the Global Property Guide’s analysis pre-dates the destruction by Hurricane Maria, which hit at the end of the third quarter.
News Source: Business Insider