Average US property prices rose by 12.5% during the first quarter, compared to the same time last year, according to the Office of Federal Housing Enterprise Oversight (OFHEO).

The biggest price increases in the index over the past year were in Nevada, with a four-quarter jump of 31.2%, OFHEO said. California, with a 25.4% price increase, overtook Hawaii to become the state with the second-quickest house price appreciation.

Washington, D.C., came in fourth, with prices up 22.2% over the year. The smallest increases occurred in Colorado, Ohio, Oklahoma, Indiana and Texas, OFHEO said.

Property prices in South Africa are apparently rising by 25.5% pa, thanks to strong buyer demand and decreasing interest rates, according to research from The Property Investor and Homebuyer Show North (24-26 June, GMEX Manchester).

South Africa's high inflation compares favourably with other favourite investment destinations. Spain comes second with 17.2%, followed by France (14.5%) the UK (13.8%), Ireland (11.1%), Australia (10.9%) and the US (9.4%).

Chris Wilson, Marketing and Communications Manager of John McDonald Properties comments: "The property market in South Africa is currently experiencing rapid growth. What's more, the demand for housing far outstrips supply. For these reasons the value of properties is expected to increase significantly and, for early investors, growth in the region of 30% can be expected in the first year."

The construction of Jordan Gate in the UAE is set to get under way. Jordan Gate will be developed in partnership with the Greater Amman Municipality and Kuwait Finance Investment Company (KFIC).

Jordan Gate, which is the first phase of the Royal Metropolis project, is a mixed-use development comprising two high-rise towers connected to a shopping mall and a service area. It will provide office space for international companies keen to set up a base in Jordan.

"Jordan Gate will play an important role in supporting the ambitious economic growth strategy of the kingdom by providing an opportunity to enter the Jordan market for investors keen to participate in the development of the region."

"It will also be an ideal base for a range of businesses in Jordan, and in contributing to the efforts of the redevelopment of Iraq," Esam Janahi, CEO, Gulf Finance House, said.

Brits buying property abroad has soared to record levels in recent years. Consequently high street travel agent, Thomson, is to now sell overseas homes for the first time.

The scheme is to be run across its 750 high street stores in partnership with Parador Properties and will offer properties for sale in Spain, Portugal and Cyprus.

Thomson marketing director Miles Morgan said: "Owning a home abroad is now a realistic option for lots of people. To survive in today's very competitive market, travel agents need to broaden the range of what they sell. This is a natural step for us."

Australian house prices predicted to fall.

Australia's home loan interest rates are set to rise to 9% next year, causing house prices in Sydney and Melbourne to fall between 15-20% by 2008 after inflation, according to a new housing report from economic forecasting company BIS Shrapnel.

With standard variable home loan interest rates forecast to rise by more than 1.5% from a current average of 7.3% to 9% in the second half of 2006, house prices should fall, according to BIS Shrapnel senior project manager Angie Zigomanis.

He said: "Interest rates will start to get to the point where they have a significant impact on prices in the second half of 2006 and continuing through to 2007, bottoming out in 2008."