The average house price rose at a faster pace around the world in the 12 months to end-March; the overall figure masked some dramatic contrasts.

An index of house prices around 55 countries rose 6.5 per cent in the 12 months to the end of March, accelerating to the quickest growth rate in the past three years, according to Knight Frank, the global property consultancy. Canada and the US both posted gains, with the former among the strongest risers in the world.

Some 48 countries in the firm’s sample posted gains in the period, five more than in the previous 12-month time-frame, the firm said. Some 11 countries notched up double-digit gains. A year before, only four such countries did so, Knight Frank said.

In China, where strong gains have prompted the authorities to curb gains, price growth decelerated to a still-potent 10.3 per cent per annum. Hong Kong (14.4 per cent) and New Zealand (13.8 per cent) were second, and third-placed for gains, respectively. Iceland topped the rankings at a sizzling 17.8 per cent. Switzerland could only eke out a 2.4 per cent gain, by contrast.

In North America, the highest 12-month change was in Canada, at 13.5 per cent (fourth place in the rankings); the US was 29^th, with a gain of 5.8 per cent.

“Given the uncertain global political landscape, the ramping up of cooling measures in large parts of Asia and the unravelling of stimulus measures such as QE in some parts of the world why are average prices shifting up a gear? Economic growth is one reason – the IMF forecast global GDP to rise by 3.5 per cent in 2017 up from 3.1 per cent in 2016 – property’s reputation as a safe haven investment is another, along with the greater availability of mortgage finance in developing markets,” Knight Frank said in its note.

Turning to Europe, the region’s strongest gainers were Malta (12.6 per cent), Czech Republic (11 per cent), Estonia (10.7 per cent) and Hungary (10.5 per cent).

Knight Frank said a growing economy and the Malta’s Individual Investor Programme – encouraging wealthy foreigners to put money into the country in exchange for citizenship – helped drive the Mediterranean island’s property price growth. The other nations were helped by historically low interest rates, wage increases and rising foreign interest.

In the UK, the country achieved annual growth of 4.1 per cent in the year to March, down from a rate of 5.3 per cent a year earlier.

While Hong Kong ranked in second spot for the biggest 12-month gain (14.4 per cent), rival Asia financial hub Singapore came at 54^th spot, with a fall of 2.0 per cent, just above Ukraine, where prices slumped by 9.4 per cent, Knight Frank said. Japan’s market was soft, down 0.2 per cent.