Covid-19 has flipped the list of top 10 countries for house price growth, thrusting Australia up 46 places defying predictions from the Reserve Bank .
Australia ranked 10th on the list with prices rising on average by 8.6 per cent behind the likes of Turkey with a 15 per cent increase, New Zealand 14.5 per cent and Lithuania 13.8 per cent, according to the annual Knight Frank global house price index.
The data showed Covid-19 hit sales volumes rather than prices as the pandemic peaked in Asia but was yet to take its toll on many parts of Europe and South America.
Knight Frank head of residential research Michelle Ciesielski said it was unlikely that sellers would lower asking prices significantly given low interest rates and the introduction of the mortgage holiday slowing distressed sales.
“Price growth was ramping up significantly prior to Covid-19 following a lull in activity off-the-back of a market correction and hesitation with a federal election and several state elections being held, while adapting to new responsible lending compliance,” Ciesielski said.
“Australia was in 10th position registering a punchy 8.6 per cent annual growth in the first quarter of 2020, up from 5.3 per cent in the fourth quarter of 2019 when in 24th position.”