Bulgaria is among the countries that marked the sharpest fall in residential prices in the third quarter, an international survey shows.

Losers on an annual basis include Bulgaria down 28%, Russia, down 9.10%, the US down 9.4% and Thailand down 18.4%, according to the latest Global House Price Index from Knight Frank.

Residential property values increased in 68% of countries reporting price changes, but house prices are still lower than 12 months ago in 57% of the locations with Israel the top year on year performer with a 13.7% price increase from the same time last year.

During the third quarter property prices in Singapore rose 13.7% compared with the previous three months and Dubai posted a modest positive growth (1.2%) but has seen prices drop in the last 12 months by 47%.

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

"There is still, however, a clear polarization 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.

Spain, Denmark and Ireland have yet to record their first quarter of growth since the credit crunch and analysts point out that 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,’ explained Bailey.

Other locations where growth is accelerating include Australia which has been 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, the report says.

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