The recovery in global house prices continued in Q3 2009, with values increasing in 68% of the countries reporting price changes in the quarter. House prices, however, are still lower than 12 months ago in 57% of the locations.

Israel remains the top performer over a 12-month period with prices increasing 13.7% to the end of Q3 2009; On a quarterly basis, Singapore saw the biggest rise with prices up 15.2% during the third quarter of the year and Dubai recorded the largest annual drop -47%, but posted moderate positive growth in Q3.

The Knight Frank Global House Price Index shows that Irish prices were down 13.1% in the 12-month period - - a likely underestimate.

Liam Bailey, head of residential research, Knight Frank, commented: “House prices are now rising in a clear majority of locations around the world with almost 70% of the locations in the Knight Frank Global House Price Index reporting growth in the third quarter of 2009.This compares with under 50% during the second three months of the year.

“There is still, however, a clear polarisation from the top to the bottom of the table. Israel remains the best performer on an annual basis and is the only country to have recorded double-digit growth (+13.7%) during the past 12 months. Prices in Dubai have fallen the most (-47%), despite posting a small recovery (1.2%) in the third quarter. The recent debt issues with Dubai World and the subsequent loss of confidence by investors means even this nascent rally is already under threat.

“Those European countries yet to record their first quarter of growth since the credit crunch include Spain, Denmark and Ireland where an oversupply of stock is holding back prices. This contrasts with the UK, which, despite being hit extremely hard initially, is staging a strong comeback as a shortage of houses for sale is contributing to rising values with demand outstripping supply.

“Other locations where growth is accelerating include Australia, which was relatively unscathed by the credit crunch. Many Asian economies are also performing strongly with quarterly growth of 6% in Hong Kong and 2.5% in mainland China. Q3 figures are unavailable for India, but prices were already rising in Q2 and that trend looks set to continue.”