House prices falling around the world

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Only 8 countries saw house prices rise, adjusted for inflation, in 2008, out of 32 major property markets. And according to Global Property Guide, “downward price momentum significantly accelerated” in Q4, with 9 countries seeing 5% price falls. As the chart shows, Latvia, Ukraine and Hong Kong saw prices fall over 10% during the quarter.

Employment levels are a key driver for house prices, and so rising jobless figures suggest that any recovery in prices will be some years away. Realistically, therefore, this important source of chemical and polymer demand is unlikely to stage a quick V-shaped recovery back to the boom period of 2003-7.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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