Australia has moved up by 12 spots in Global House Price Index with 16.4% growth in house prices just 0.4% ahead of Canada. Last year, Australia placed the 19th spot with 6.1% price growth, last quarter Q1 of 2021 it moved up by 1 spot at 18th position and finally jumped to 7th position in the latest Q2 of 2021. Australia is considered one of the top 10 countries for global house price growth where its strongest growth was recorded since 2003.

The home of the world’s most liveable city – Auckland, New Zealand keeps it second position from last year with 25.9% growth while Turkey still leads the annual rankings with 29.2% growth. On average, house prices increased 9.2% across the 55 countries ranked in the Knight Frank global house price index.

Top countries for global house price growth

Undersupply remains the biggest driver of significant price growth in residential values across Australia according to Michelle Ciesielski, Knight Frank’s Head of Research. At the end of June 2021, it was revealed that every capital city in Australia has recorded a rising trend in annual sales volume with a 30% average and the number of days a property was listed on the market has dropped by 24% during the past year. Smaller capital cities are also experiencing more sales activity which contributes in driving up Australia’s residential growth.

Once again, Australia’s residential market has proved resilient despite a global pandemic with price growth faring much better than any other countries imposing stricter lockdown rules.