Auckland has been ranked the world’s second strongest city housing market last year by consultancy Knight Frank.
The company’s global residential cities index, which covers 165 cities over 44 countries, found the 25.4 per cent growth in Auckland house prices last year outstripped all others, except the Chinese city of Shenzhen, where prices rose 47.5 per cent.
Sydney was fourth with 19.9 per cent growth, and Wellington was 80th on 3.7 per cent.
In contrast, the official house price for mainstream residential markets rose 4.4 per cent.
Kate Everett-Allen, a international residential research partner for Knight Frank, said urban and rural housing markets were becoming increasingly polarised when it comes to price performance.
According to the World Bank, just over half of the world’s population currently lived in cities, but by 2045 the urban population would rise by another 2 billion to 6 billion, “suggesting the pressure on urban prices looks set to intensify”.
Regionally, Australasia was the third fastest for house price growth, up 6.7 per cent but it was eclipsed by 12.4 per cent growth in the Middle East and 8.8 per cent in Africa.