The global house price boom has started to slow for countries within Europe but Asia’s property market is speeding up, according to the latest news release from The Global Property Guide, the online international property news and advice portal.
The dramatic slowdown being witnessed across several different countries includes Estonia which had seen the biggest rise in house prices for 2005 and 2006 but has so far reported only a 5.68% increase in the first quarter of 2007 compared to an unprecedented 77.52% rise for the same quarter back in 2006.
France, Sweden, Ireland, Spain, Greece, the Netherlands, Switzerland and Portugal are also slowing. One of the main reasons given for the slowdown is the higher interest rates after the European Central Bank (ECB) raised its key interest rate nine times to four per cent in June 2007, from a historic low of two per cent in November 2006.
According to The Global Property Guide’s press release, those European countries which have not adopted the Euro have experienced stronger house price increases over 2007’s first quarter than countries with the Euro. Latvia, who will be adopting the Euro in 2010, currently shows the biggest rise for this year with an appreciation of 61.91% for the first quarter, though data from Latvia's research-oriented estate agency, Latio, suggests that prices have already started to fall for the second quarter of this year.
Asia-Pacific now appears to be the next geographical region to see house prices rise after it was reported that the market in the Philippines, Singapore and South Korea rose by more than 10% year on year for the first quarter of 2007.
Countries that have been suffering with political crisis such as Thailand and Israel are showing little sign of an increase. Thailand’s house prices are down from an 8.03% increase to the first quarter of 2006 and Israel’s house prices fell by 10.52% in the first part of 2007. This is reportedly due to increased political and security concerns in the Middle East.
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