Asian countries with the strongest property price growth

Residential property prices in Bulgaria continue to rise, despite forecasts of doom. The average price of dwellings rose 31.55% in the year to Q1 2008 (15.21% in real terms) which put the country on one of the leading positions according to the latest “Global Property Guide” report.

Property prices have risen most in the Chinese city of Shanghai (40.5%) followed by Slovakia, Bulgaria and Hong Kong (see the table below). According to “Global Property Guide” property price growth is about to slow due to the US and UK housing markets which continue to weaken. The higher interest rates have made renting of a dwelling much more profitable than its buying.

The “Global Property Guide” research has showed that only in 13 out of the 29 countries altogether the property price growth rate is positive. Latvia, Ireland, Estonia and Ukraine are at the bottom of the countdown as the Lithuanian`s capital Riga sees the strongest house price slowdown. Prices per sq. m there have dropped by 38% and will reach 2 000 $ per sq. m (now they are about 3 000-4 000 $) according to the Lithuanian experts.

In the conducted house price trends research inflation has also been taken into consideration. Thus Slovakia takes the top leading position followed by Shanghai and Bulgaria.

House price change (%)

Sources: www.dnevnik.bg