Global property markets ready to soar this year on monetary, fiscal support

26 May, 2021 12:00 AM printer

BENGALURU: Residential property markets in major economies will soar this year on huge monetary and fiscal support and amid a recovery from the pandemic, according to Reuters polls, which showed risks for prices skewed to the upside.

Average home selling prices have hit eye-watering levels in 2021 in some countries. That trend is expected to continue, driven by low mortgage rates, swift vaccine rollouts and the easing of restrictions after deep pandemic-induced recessions last year, report agencies.

The global boom in property prices comes alongside soaring stock markets, which quickly bounced back from a slump on pandemic-driven economic damage and devastating job losses, to focus on unprecedented stimulus and the recovery at hand.

Reuters polls of more than 100 property market experts taken May 11-24 showed big upgrades to house price forecasts for the United States, Britain, Canada, Australia and Dubai compared with just three months back, outpacing expected GDP growth and consumer price inflation.

“Consumer confidence has risen strongly due to the success of vaccination programmes and survey evidence suggests the pandemic has led to more people looking to move home. Supply shortages point to upward pressure on prices in the short term,” said Andrew Harvey, senior economist at Nationwide.

Almost 60 per cent of analysts, or 55 of 92, who responded to a separate question on property markets across the globe, said risks to the outlook were skewed to the upside over the coming year. The remaining 37 said more to the downside.