Dubai continues to hold the top position on Global Property Guide’s list of highest price rises recorded across 42 cities for the second consecutive quarter of 2013.
The organisation, which collates real estate data from across the world, said prices climbed by 17.99 per cent during the year to Q2 2013.
House prices had declined by 53 per cent from Q3 2008 to Q3 2011, due to the global financial and economic meltdown. However, Dubai started witnessing recovery from the second quarter of 2012, supported by the UAE’s robust economic growth.
“The strength of Dubai 's housing market has been bolstered by several other factors, including the availability of finance, the city's status as a safe haven, an exchange rate pegged to the US dollar, and improved consumer and investor confidence,” it reiterated.
Earlier this month, Standard Chartered said that despite prices soaring Dubai's property market is not heading towards another crash with market now more sustainable, being influenced by an improved economy rather than speculation that will not repeat the same boom-and-bust cycle of 2008.
Knight Frank, a UK-based global consultancy, also said prices in Dubai had surged 21.7 per cent in the past 12 months (ended June 2013).
Using inflation-adjusted figures, the Global Property Guide's survey revealed prices rose in 30 of 42 housing markets. However, the more upbeat nominal figures, which are more familiar to the public, showed house prices rising in 34 countries and falling in only eight countries.
Taiwan, the star performer in Asia, took the second position on the list, beating Hong Kong, with house prices soaring 14.52 per cent during the year to Q2 2013. Hong Kong was placed third with price rise of 13.7 per cent.
Beijing, China, saw prices jump 10.69 per cent during the year to Q2 2013, in sharp contrast with the 4.97 per cent year-on-year decline during the year to Q2 2012. It was placed fourth on the list followed by Makati CBD, Philippines, which was average price of three-bedroom condominium units rising 9.98 per cent during the year to Q2 2013. The increase was the highest since Q4 2007.
Japan recorded the world's sixth highest house price rise during the year to Q2 2013. Average price of new condominium in Tokyo rose 9.02 per cent year-on-year to end-Q2 2013.
The US took the seventh position with house prices rising 8.51 per cent during the year to Q2 2013.
Denmark, Turkey and Sao Paulo, Brazil, were placed 8th, 9th and 10th on the list with annual increases of 7.76 per cent, 6.94 per cent and 6.79 per cent, respectively.