The Knight Frank Global House Price Index, which tracks mainstream residential markets in 55 countries across the world, is weighted by purchasing power parity. It increased by 2.7 per cent over the year. 

“The US Federal Reserve’s meeting this month could have a significant impact on the property markets in Asia-Pacific. A rate rise will likely lead to Singapore’s and Hong Kong’s currencies being pulled upwards, hence lifting mortgage costs for existing and potential homeowners,” said Nicholas Holt, Knight Frank's head of research for Asia-Pacific. 

He noted that the impact on some emerging Asian markets could be more indirect. For example, capital outflows from the country could lead to a slowdown in its economy and therefore increase pressure to raise interest rates to support its currency.

“Hopes remain however that with enough 'forward guidance' from the Fed, a slow and gradual tightening will ensure that housing markets in the region do not experience too much turbulence.”

Countries where annual price growth was in the double digits were Turkey, Hong Kong, Sweden, New Zealand and Luxembourg.

Scandinavia saw notable growth, with prices across Denmark, Norway, and Sweden rising on average by 7.8 per cent year-on-year.