Slovenia outpaces China as fastest-growing housing market

Strict housing policies will continue to cast pall over mainland markets

Ljubljana Castle, Slovenia. Tomas Kulaja/Shutterstock

Slovenia has topped Knight Frank’s latest Global House Price Index, where it outpaced even China’s resurgent price growth.

Thanks to falling unemployment, low interest rates, and, until recently, limited supply, average house values in the European nation accelerated 18.2 percent in the year to the first quarter of 2019.

Average housing prices in China grew to 11.6 percent in Q1 2019, the report stated. While Hong Kong prices are expected to remain largely stable during the remainder of 2019, those in the Greater Bay Area (excluding Hong Kong and Macau) will see continued growth in single digits.

More: Billionaires worldwide still parking their wealth in real estate

Such a resurgent price growth is unlikely to last long though. “Across the rest of mainland China, we expect price inflation to be tightly controlled via a range of stringent policy measures,” wrote Kate Everett-Allen, partner for International Residential Research at Knight Frank.

Last month, the Ministry of Housing and Urban-Rural Development warned the cities of Suzhou, Foshan, Dalian and Nanning to stabilise land and house price inflation.

Latvia ranks second on the index, its annual hike of 11.9 percent edging out China and topping the likes of Malta (fourth) and Czech Republic (fifth).

Taiwan’s annual growth of 8.4 percent was second-fastest in Asia, ninth worldwide. India and Japan placed 11th and 20th, respectively, with prices climbing 7.7 percent and 5.5 percent over a 12-month period.

Outstanding performers last year and in 2017, such as Iceland, Turkey and New Zealand, now sit firmly mid-table, the report noted. Iceland and New Zealand saw their housing prices accelerate just 4.4 percent and 4.3 percent, while Turkey climbed just 3.5 percent.