CBRE’s new Global Living Report
shows that British and Australian home and apartment values have risen faster over the past 30 years than any other housing markets across the world.
From 1975, Australian house prices have risen 221.4 per cent and British house prices increased 232 per cent. Britain and Australia were closely followed by Ireland at 185.5 per cent, Belgium at 174.4 per cent, France at 147.0 per cent and Norway at 144.6 per cent.
CBRE Australian Research Head Stephen McNabb told the Australian Financial Review
that factors including a chronic undersupply of new housing, continued population growth and strong emigration numbers are key influences behind fast-growing Australian capital values.
“Australian capital values have been supported by a good market balance,” Mr McNabb said.
“Under-building has been more prevalent over the past 10 years, combined with relatively strong population growth.”
Mr McNabb also mentioned that a degree of financial stability throughout 2007-08 also supported Australian housing values at a time when many other countries suffered falls due to the global financial crisis.
“The Australian economy and sound position of the financial system and the banks has supported capital appreciation without an extreme period of deleveraging in the household sector which affected asset values in Europe and the US during the GFC,” he said.
Japan and Germany are the only two developed countries to suffer house price falls in the past 30 years. Germany capital values fell by 7.8 per cent and Japan –fell by 14.5 per cent.