Global Property Guide reveals house price falls throughout the world
Property researchers the Global Property Guide have revealed the extent to which house prices have affected countries around the world during the year to 31 March 2009.
Among the 32 countries studied in the survey, 27 experienced price falls over the period with Latvian capital, Riga, seeing average apartment prices falling by a staggering 50% over the 12 months.
The country is suffering amid a deep recession with its economy contracting 18% in the first three months of 2009.
Meanwhile, Dubai experienced the second largest falls, with prices down by 35% over the period. During the previous year, prices in Dubai rocketed by almost 60% as demand for property and a surge in tourism sent prices soaring.
Singapore suffered more than its Asian counterparts with prices plummeting 23% in real terms over a year earlier, and 13% over a quarter earlier. This represents the largest fall since 2000.
It was reported in April that Singapore’s economy contracted by 19.7% for the January to March period – the largest quarterly contraction on record.
The country relies heavily on exports and the global economic downturn has lead to a slump in demand, sending property prices falling.
However, on a positive note, Switzerland reported that house prices increased, up 4.3% from the previous year, primarily due to lower interest rates and an increase in the number of foreign residents which helped keep property demand stable, according to the Global Property Guide.
However, in related news, it has been announced today that Switzerland has entered recession after its economy contracted by 0.8% in the first quarter of 2009.
Finally, Thailand, Austria and Israel all experienced a recovery in house prices during the 12 month period.