Property market growth world's 11th fastest

Last updated 14:05 05/06/2014

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If you are fed up with being priced out of the overheated property market, be thankful you don't live in Dubai.

The latest Global House Price Index from research agency Knight Frank ranks New Zealand's property market as the 11th fastest-growing out of 54 countries surveyed.

With a 9.2 per cent annual growth rate in the first quarter of the year, it was ahead of the global index growth of 7.1 per cent.

But spare a thought for the citizens of Dubai, who have seen a 27.7 per cent increase in house prices over the past 12 months.

Second on the list was China with 17.5 per cent growth, and then Estonia at 16.2 per cent.

Australia's market was hotter than New Zealand's, coming in at No 7 with a 10.9 per cent growth rate.

For the first time since 2008, no country tracked by Knight Frank suffered an annual price fall in double digits.

Bottom-ranked Croatia scraped in with a 9.7 per cent drop, with 13 others in decline, most of which were fellow central European countries.

The report's authors expected to see the index rise again in the three months to June 30, with all eyes on central banks for rate rises: "The issue is not when interest rates rise but the speed and extent to which they do."

Knight Frank New Zealand head Layne Harwood said he expected New Zealand's ranking to stay about the same in the short term.

He did not see a problem with New Zealand sitting at the top of the 2 to 9 per cent growth band.

"Clearly, tighter lending conditions are going to assist in that, and with the availability of land coming on to build, that'll also assist," he said.

"No, I don't really see it as an issue at all."

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