Recent data from Knight Frank shows some markets boomed big in 2010. Not surprisingly, Asian markets like China, Hong Kong, and Singapore made the cut. But Central European stars like Poland also impressed.
If you’re just looking at troubled spots like Ireland and Spain, you’re missing out on booms that could turn into the next bubble.
Annual Change: Up 6.2%
Q3 2010 Change: Up 0.9%
Outlook: Price rises in Malaysia are expected to continue in 2011, and some are projecting another 13% rise in H1 2011.
Annual Change: Up 6.6%
Q4 2010 Change: Down 0.1%
Outlook: Norway’s domestic economy remains strong, so there’s little reason to suspect a downturn, particularly with oil prices looking bullish.
Annual Change: Up 6.8%
Q3 2010 Change: Up 2.6%
Outlook: Belgium’s economic strength is built on that of Central Europe, and the continued expansion of Brussels as the European capital. The rumored ECB rate hike should have a negative impact on the sector.
Annual Change: Up 7.4%
Q3 2010 Change: Down 1.0%
Outlook: Taiwan’s property market is currently undergoing a correction, and the central bank is engaged in tightening measures that should also hurt the market.
Annual Change: Up 7.8%
Q3 2010 Change: Up 1.5%
Outlook: Denmark’s property market will be “fragile” for some time, according to the country’s economy minister. There still remains a great deal of real estate for sale, and few buyers, which should limit further price spikes.
Annual Change: Up 8.1%
Q3 2010 Change: Up 1.1%
Outlook: Poland is a renewed target for private equity investors. Growth in Poland has remained stable, being tied to central European strength.
Annual Change: Up 8.9%
Q3 2010 Change: Down 1.7%
Outlook: India’s real estate market could slow if the country continues its interest rate tightening policy. The sector also has serious problems with corruption.
Annual Change: Up 9.5%
Q4 2010 Change: Up 1.4%
Outlook: Like other European economies, France faces the repercussions of an ECB rate hike.
Annual Change: Up 9.9%
Q3 2010 Change: Up 3.7%
Outlook: Growth in Austria, like much of central Europe, is stable. But there are concerns about the country’s banking system and its exposure to Eastern Europe. The real estate sector may be impacted by any increase in ECB interest rates.
Annual Change: Up 14.0%
Q4 2010 Change: Up 1.8%
Outlook: Prices were down overall in February, but continue to rise in central Singapore. Government tightening measures are in place, the with the government providing housing for 80% of the population, there’s only limited space for speculation.
#4 China (only Beijing and Shanghai)
Annual Change: Up 15.3%
Q4 2010 Change: Up 6.4%
Outlook: China is probably the most talked about real estate bubble in the world, with ghost cities the new topic du jour.
The rise in house prices is likely to slide with tightening measures in China taking effect.
Annual Change: Up 16.2%
Q4 2010 Change: Up 3.5%
Outlook: Israel continues to experience strong GDP growth and a booming economy. The size of the country is also a limiting factor that may help to drive prices higher. Regional instability, however, may be a deterrent to potential investors.
Annual Change: Up 16.9%
Q4 2010 Change: Down 0.8%
Outlook: Latvia’s market boom is somewhat based on a government policy that provides EU residency to those who invest $96,112 or more in a property. Whether this policy will survive the scrutiny of EU leadership in the long-run, however, is unknown.
#1 Hong Kong
Annual Change: Up 20.1%
Q4 2010 Change: Up 3.7%
Outlook: Hong Kong prices experienced an enormous spike in 2010, based on both high demand and easy money flowing from its exchange rate policy with China. As tightening measures take hold on the mainland, that rampant growth in Hong Kong should slow.
Source: Knight Frank