Asian housing markets are now two-tiered
Five of the eleven Asian markets for which figures are available saw house price increases during the year to Q2 2016. Six Asian housing markets were stronger in Q2 2016 than a year earlier.
China’s housing market was the best performer in our global house price survey, as house prices surged after the government introduced measures to support the housing market. In Shanghai the price index of second-hand houses surged by 20.38% y-o-y in Q2 2016, in sharp contrast to a decline of 0.12% in the same period last year and the highest annual rise since Q2 2008. During the latest quarter, house prices in Shanghai rose by 6.68%.
Japan’s housing market remains robust, despite a weak economy. In Tokyo, the average price of existing condominiums rose by 5.7% during the year to Q2 2016, from y-o-y increases of 5.45% in Q1 2016, 1% in Q4 2015, 8.97% in Q3 2015, 6.2% in Q2 2015, and 6.34% in Q1 2015. Residential property prices fell slightly by 0.22% q-o-q in Q2 2016.
Asian housing markets with modest or minimal house price rises included Thailand, with house prices rising by 4.38% during the year to Q2 2016,Vietnam (3.58%), and South Korea (1.07%). Thailand and Vietnam recorded positive quarter-on-quarter growth in Q2 2016 of 2.17% and 1.64%, respectively, while South Korea saw a quarterly decline of 0.07%. Only Thailand showed better performance in Q2 2016 compared to the previous year.
Some Asian housing markets continue to struggle. House prices fell in six of the eleven Asian markets for which figures were available during the year to Q2 2016.
Hong Kong’s housing market is now the weakest housing market in Asia and the third worst performer in our global house price survey. Residential property prices fell by 10.73% during the year to Q2 2016, in sharp contrast with the 16.88% y-o-y rise a year earlier. House prices rose 2.68% q-o-q in Q2 2016.
Singapore’s housing market is still weak, amidst fragile economy. House prices fell by 2.94% during the year to Q2 2016, after y-o-y declines of 2.35% in Q1 2016, 3.05% in Q4 2015, 3.62% in Q3 2015, 3.35% in Q2 2015, and 3.54% in Q1 2015. House prices fell by 1.21% q-o-q during the latest quarter.
In The Philippines, the average price of 3-bedroom condominium units in Makati CBD rose by 2.86% during the year to Q2 2016, in contrast with y-o-y increases of 2% in Q1 2016, 2.96% in Q4 2015, 5.41% in Q3 2015, and 6.61% in Q2 2015 and 5.4% in Q1 2015. Housing prices dropped 3.9% q-o-q during Q2 2016.
In Indonesia residential prices in the country’s 14 largest cities fell by 0.35% y-o-y in Q2 2016, after annual declines of 0.16% in Q1 2016, 0.2% in Q4 2015, 1.49% in Q3 2015, 1.07% in Q2 2015, and 0.26% in Q1 2015. House prices increased slightly by 0.34% q-o-q during the latest quarter. Demand continues to weaken sharply and total supply growth is expected to slow in the coming years.
North America’s housing markets remain healthy
The U.S. housing market remains strong, despite a weakening of the economic recovery. The S&P/Case-Shiller seasonally-adjusted national home price index rose by 4% during the year to Q2 2016 (inflation-adjusted), after annual rises of 4.26% in Q1 2016, 4.51% in Q4 2015, 4.82% in Q3 2015, 4.3% in Q2 2015, and 4.41% in Q1 2015. House prices increased by 1.89% during the latest quarter.
This was supported by Federal Housing Finance Agency’s seasonally-adjusted purchase-only U.S. house price index, which rose by 4.34% during the year to Q2 2016 (inflation-adjusted), slightly down from y-o-y increases of 4.54% in Q1 2016, 5.36% in Q4 2015, 5.68% in Q3 2015, 5.62% in Q2 2015, and 5.29% in Q1 2015. The index was almost unchanged in Q1 2016 from the previous quarter.
Canada’s housing market continues to grow stronger, despite repeated market-cooling measures. House prices in the country’s eleven major cities rose by 8.4% during the year to Q2 2016, up from 4% the previous year and the biggest annual increase since Q2 2010. House prices increased 4.41% q-o-q in Q2 2016. Home sales, however, dropped 2.9% in July 2016 from the same period last year, the largest decline since April 2013, according to the Canadian Real Estate Association(CREA)
