A RECOVERY in the international housing market is underway with over half the countries in a recent house price index report recording positive annual growth.

Ireland, however, slid further down the rankings to 43rd place in the Knight Frank report, putting it in fifth last position behind countries such as Bulgaria, Poland, Dubai and Iceland.

Ireland’s position on the table marked a fall from 41st place in the last quarter of 2009 – and a drop of almost 19 per cent for the year. Knight Frank says prices slid a further 4.8 per cent this quarter which was less than the previous quarter decrease of over 8 per cent.

Three Asian countries head the table, with China, in the top spot, showing a 68 per cent increase in house prices since January 2009, followed by Hong Kong and Singapore, while Europe dominates the bottom half of the table. Estonia is in last place after experiencing a massive 40 per cent drop in house prices since last year below Ukraine, Lithuania and Latvia.

Knight Frank says prices increased in 53 per cent of locations indicating that a recovery in global housing markets is underway. This compares to the beginning of 2009 when only 33 per cent reported positive annual growth.

The worst performing European markets were the three Baltic states and Ukraine although Knight Frank says they are starting to experience some respite with prices falling at a lower rate than previously.

Northern European countries such as Scandinavia, Norway, Sweden and Finland fared better, however, and showed double-digit annual growth and were “less beset by currency weakness and debt crisis than many of their European neighbours”.

The report says that while global housing markets remain polarised, each quarter provides new evidence “that global recovery is gaining ground as the proportion of countries moving into positive territory increases”. With a cautionary note it adds, “It remains to be seen if this is another period of sustained growth or the middle peak in a double-dip recession.”