Whether or not a real estate bubble is developing in Israel, the country is not far behind Hong Kong. The "Global Property Guide's survey of changes in home prices for the third quarter of 2010 puts Israel in fourth place, after Hong Kong.
The survey ranks residential real estate markets by the change in prices from the corresponding quarter of the previous year. The Latvian capital of Riga is in first place, with a 24.6% rise in nominal home prices, followed by Singapore, with a 22.9% rise in nominal home prices. "The rapid economic expansion in Singapore canceled out anti-speculative measures implemented by the government," "Global Property Guide" said.
Hong Kong is in third place, with nominal home prices 20.5% higher in the third quarter than in the corresponding quarter. "Global Property Guide" notes that home prices rose strongly over the year, even after the imposition of stamp duty, plus tighter financing conditions, and restrictions on home ownership.
Israel is in fourth place, with nominal home prices 16.4% higher in the third quarter than in the corresponding quarter, and 4.4% higher than in the preceding quarter. "House prices in Israel have surged continuously since 2009, and in the year to third quarter 2010 prices rose 14.12%. This marked the fifth consecutive double-digit quarterly year-on-year rise in prices of owner-occupied dwellings in Israel," "Global Property Guide" says.
The next six places in the top ten fasting rising home market prices are Australia (eight cities), Taiwan, Finland, Norway, South Africa, and the UK (nationwide). The third quarter nominal rise in home prices ranged from 11.5% in Australia to 4.5% in the UK, compared with the corresponding quarter.
Ireland closed the "Global Property Guide" rankings for the third quarter, with a 14.8% drop in nominal home prices compared with the corresponding quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on December 6, 2010
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