Global property markets ready to soar this year

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.

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% 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.