Best performing property markets around the worldGlobal real estate markets have had a forgettable few years, with most markets rising only slightly if at all. But over the past five years, prices in certain markets have managed to buck the trend registering large gains over that period.  

According to KnightFrank the global real estate consultancy, which did the research, here is a list of the world's 10 hottest property markets ranked according to highest average growth in housing prices from the fourth quarter of 2006 to the same period in 2011.


On the 10th place of the list is Switzerland. This famously neutral country is anything but when it comes to property, being home to some of the world’s most expensive cities and real estate. Switzerland has seen property prices boom in the past five years with a 5-year price growth of 27.5 %. This surge was caused in part by low interest rates, designed to put a lid on the surging franc and slowing growth.

Malaysia comes in 9th with a 5-year price growth of 28.5%. Concerned with
spiralling house prices the government is considering doubling the entry price for foreigners buying property in the country. Middle-class Malaysians who feel priced out of the real estate market by overseas buyers are pressurising their government to raise the minimum price of homes that foreigners can purchase from $162,972 to $325,944.

Norway and Canada are tied for 7th with a 5-year price growth of 28.7%. Norway is the only other European country besides Switzerland to make the top 10.

With most of Europe facing a gloomy economic outlook, Norway, with their oil-generated wealth, is set to expand 2.7% in 2012. Low interest rates have led citizens to take on debt to buy property. This has lead in part to a property-price surge. 

Canada's housing market has remained fairly robust over the past few years, with existing home sales rising 8.6% in February, compared to a year earlier.

In 6th position is one of the world’s most densely populated countries, Taiwan.

Taipei, in particular, has witnessed a period of rapid urbanization leading to crowded housing conditions. Although house prices have risen more than 30% on average between 2006 and 2011, prices did dip last year by 4.1%. This decline was caused in part by tightening measures like the "luxury tax" implemented by the government last year.

Colombia, the only South American country to make the list, comes in 5th with a 5-year price growth of 39.4%. Good economic growth, GDP rose by close to 6% in 2011, it’s highest in four years, has led to an increase in house buying, particularly among the middle-class.

Singapore has seen a 5-year price growth of 50.5% and is 4th on the list. This is the most expensive real estate market in Southeast Asia, with the average price of a prime property in the city costing about $25,600 per m² or $2,600 per square foot in the fourth quarter of 2011, according to Knight Frank. Singapore also ranked as the third most expensive city to rent high-end property in Asia last year after Hong Kong and Tokyo, according to reports.

 Israel might be a small country surrounded by not so friendly neighbours but that hasn’t stopped their housing prices rising by 54.5% over the same 5-year period. Sitting pretty in 3rd place, Israel’s rising property prices led to a series of protests in 2011, with demonstrators asking government to take measures to cool the market.

In second place and streets ahead of the rest of the field bar one, Hong Kong has enjoyed a 5-year price growth of 93.7%. Hong Kong has some of the world’s most expensive property and in 2011 overtook London as the world’s most expensive office rental market.

Number 1 on the list is no surprise. China has continued its meteoric economic growth rate and their 5-year price growth was close to 111%. They have the world’s hottest property market with housing prices in large cities like Beijing and Shanghai having surged by over 110 percent in the past five years as the world’s second biggest economy continues to experience massive economic growth.

Fears of a growing asset bubble led the government to spend the last two years reining in rising house prices by limiting multiple home purchases, raising interest rates and hiking bank reserve requirements.