The Q3 2020 Global House Price Index by Knight Frank found that Turkey leads the index for the third consecutive quarter with annual price growth of 27%. However, in real terms once inflation of 14% is deducted, annual price growth sits closer to 13%. Overseas interest from the Middle East and a buoyant economy are bolstering prices, GDP increased 16% in Q3 compared to Q2.
New Zealand (15%) jumped from 11th to second place between Q2 and Q3 as the country saw demand increase post-lockdown. Residential sales in the country increased by 41% in Q3 2020, compared to a year earlier.
With many housing markets frozen in Q2, some saw a sharp rebound in sales and prices in Q3 (New Zealand, UK and the US), others witnessed only a marginal impact on pricing (China, France, Germany), and finally some have seen price growth move into negative territory (Hong Kong, Singapore and Spain).
Markets such as the UK, New Zealand and some Indian cities had an additional boost either in the form of a stamp duty holiday or relaxed mortgage lending rules, the report added.