Hobart ranks in Global Residential Cities Index's top 10 for price growth

The Global Residential Cities Index, which tracks the movement in mainstream residential prices across 150 cities worldwide, has provided a unique window into the pandemic's impact on housing markets amid the varying restrictions on movement that dominated 2020.

Overall, the index's annual rate of growth increased between Q2 and Q3 2020, from 4.1% to 4.7% and 18 cities saw prices rise by more than 10% year-on-year, up from 16 in Q2 2020. 

Hobart came in at number eight on the global list of 150 cities ranked by annual price growth from Q3 2019 to Q3 2020 with an increase of 13.6%. This was followed by Darwin which ranked 34th (7.3% growth), Canberra at 39 (6.7%) and Adelaide at 45 (6.4%). 

Sydney was next at 53 (6.0%), then Brisbane at 110 (2.0%), Melbourne at 114 (1.9%) and Perth at 116 (1.2%). 

Record low interest rates, huge fiscal stimulus measures as well as a release of pent up demand in Q3 are behind the uptick in price growth, and with travel restrictions during this period buyer demand was largely domestic in nature.

Emerging markets are leading the way with Manila witnessing stellar price growth of 35% year-on-year. In Turkey, the cities of Izmir (28%), Ankara (27%) and Istanbul (26%) occupy second, third and fourth place respectively with St Petersburg (19%) completing the top five.

All eyes are now on Q4 data when we may see greater regional variations emerge. Europe may see price growth moderate in Q4 due to recent lockdowns, before a further of release of pent up demand in Q1 2021, whilst sales and prices in some parts of Asia may start to gain traction.