Global real housing prices declined in the fourth quarter, driven by falling prices in emerging Asia, according to new data from the Bank for International Settlements (BIS).
Real global housing prices were down 1.6% year over year for the quarter, as prices in emerging markets fell 3.5%, while advanced economies saw a 1% rise in real prices.
The BIS said that the overall drop in global real prices “was mainly driven by a few large economies,” while many countries actually saw price gains.
Asian housing markets led the decline, with prices down 5.7% in the quarter, led by 9% drops in China and Hong Kong — while Europe drove the increase in advanced economies.
Euro area prices were up 1.9% in the fourth quarter, driven by 9% gains for Spain and Portugal, while prices declined in France and Austria and were flat in Germany, the BIS reported.
Additionally, prices were stable in the U.S. and Japan, but dropped by 3% in Canada, it noted.
Despite the recent weakness in global real house prices, these prices are still up by about 20% since the global financial crisis, the BIS said — with advanced economy prices up 33% and emerging market prices 11% higher over that period.