Globally, the property market is booming as the housing market is gliding on an extended boom.
- Knight Frank reported that global valuations are increasing at the fastest rate since 2006, with annual property prices doubling.
- The drivers for increasing property prices are consistent, including access to cheap mortgages, post-pandemic need for additional space, movement of remote workers to regional towns, and fear of the future increase in property prices.
- As prices soar, the risks to individual households and society are increasing. Big mortgages will lead borrowers vulnerable to a potential increase in interest rates, reducing disposable income.
- The US home prices increased the most in the 30 years period, with significant price rises in most suburban and rural areas.
In the United Kingdom, houses are selling within a week as intense competition has led to a temporary shortage. China’s home prices in the cities increased by 10.8% from 2021 to May of 2021.
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