NZ ranked 5th in global house price index

The latest Knight Frank Global House Price Index shows that New Zealand house prices grew by 10.9% in the 12 months to the end of June 2015.

This growth means New Zealand has moved up the rankings from its seventh place in the Knight Frank Index for the first quarter of 2015.

Only Hong Kong, Turkey, Estonia and Luxembourg recorded higher growth.

However, those worried about Auckland’s hot housing market might take some comfort from the fact that it doesn’t come close to the house price inflation of the number one ranked country – Hong Kong.

Hong Kong experienced growth of 20.7% over the 12 months to the end of June 2015.

Knight Frank residential research analyst Kate Everett-Allen said the Hong Kong market’s growth, which is due to a chronic shortage of houses, continues to defy the government’s cooling measures.

Overall, the study found that global house prices increased by just 0.1% in the 12 months to the end of June 2015.

This was the weakest growth in four years.

Everett-Allen said that lingering concerns over the Eurozone economy, jitters in global stock markets and discussions of when, not if, a US rate rise occurs is impinging on growth.

*The Knight Frank Global House Price Index examines 56 countries with a sizeable property market and for which reliable house price data is available.