The Australian property market is known as one of the world's best performers despite a 20 per cent rise in prices since last year.

In a survey conducted with 47 countries by international real estate agent Knight Frank, Australia's growth in property values was attributed by a combination of a 40 year low in interest rates, first home buyer's grant increase, and population growth. The survey ranked the nation as the world's fourth best for price growth.

"With interest rates now rising, the government withdrawing stimulus and the supply response picking up, we expect house prices to slow over the next six to nine months," Liam Bailey, head of residential research at Knight Frank said.

China became first place with house prices reaching up to 68 per cent in the year to March 2010. Hongkong and Singapore ranked second and third places respectively.

The survey showed that the entire Asian Pacific took the lead as the biggest grower in house prices increase by 17.8 per cent.

On the other hand, European countries performed poorly, mostly ranking at the botoom. Estonia slipped by 40.3 per cent in the year ot March 2010, while Ukraine and Lithuania's performances put them at the bottom.

In the United Kingdom, house prices only showed a steady 8.8 per cent over the same period.

Scandinavian countries meanwhile, showed a slight growth in home prices.

"In Europe a positive story has been provided by the Scandinavian countries of Norway, Sweden and Finland.

“Here annual growth has hit double digits as housing markets, less beset by currency weaknesses, and debt crisis than many of their European neighbours, has allowed supply shortages to fuel growth once more," Mr Bailey said.

The study conducted by Knigh Frank was based on the House Price Index by the Australian Bureau of Statistics.