As more purchasers opt out due to increasing borrowing rates, housing prices have decreased globally.
The Bank of Korea increased interest rates to combat inflation, which had the worst effects in South Korea. There were 7.5% less expensive homes on average in the third quarter than they were a year earlier. New Zealand, Peru, China, Hong Kong, and other countries all saw drops.
According to a new research from real estate consultancy Knight Frank, prices increased overall at a rate of 8.8% in the third quarter across 56 nations and territories, down from 10.9% at their peak in the first three months of the year. But when inflation is taken into account, that is a 0.3% year-over-year decrease.
The International Monetary Fund (IMF) provided information on real estate costs in the world's top economies, which is also included in the article. The IMF reports that while prices in the UK are down, home prices in the US are up 5.7% year over year.
Price Change by Country
Source: Bloomberg.com
Portugal, Singapore, Ireland, and Iceland all saw double digit growth in the third quarter, boosted by both robust domestic demand and the return of expatriates and foreign investment. 16 of the 150 cities the consultancy was monitoring experienced a decrease in prices. With a 17.3% decline, Wellington, New Zealand, topped the pack, with prices falling 9.8% in Buenos Aires, 3.6% in Sydney, and 2.1% in Venice, Italy.
Thailand Housing Price Trends in 2023
Thailand housing prices are seeing a uptrend and uplift in the fourth quarter of 2022 and seeing growing confidence in the first fews weeks of 2023.
The sentiment index for development costs was the lowest at 33.0, up from 23.6 and 28.6 in the second and third quarters, which were ascribed to the outbreak of the conflict between the Ukraine and Russia early in the previous year. The present condition index for listed developers for the quarter fell to 55.2 from 58.0 in the third quarter, while it increased for non-listed enterprises from 42.6 to 46.0.
The economic recovery increased sentiment towards future investment, jobs, research costs, and new product launches. On December 31, 2022, the lowering of loan-to-value limitations and the reduction of transfer and mortgage fees from 2% and 1%, respectively, to 0.01% each, with the former increasing to a reduction of 1%, both came to an end. For an in-depth guide on why to invest in Thailand real estate check out the guide here.
Final Thoughts
As you notice, countries that are somewhat dependent on tourism are seeing housing prices trending upwards because of the free movements for people. Thailand and Portugal are two major real estate investments hubs that depends on direct foreign investments. Singapore is a big financial hub that high-net-individuals invest in real estate, stock markets, and currency.
On the other hand, countries where tourism or known for big direct foreign investments hub does not contribute to it GDP much are seeing housing prices drop.
Real estate is all about investment and return of investments. Check out your real estate investments by rental yield. Check out free rental yield calculator and formula here.
