The world's biggest real-estate bubbles, from Hong Kong to London
October 05, 2018 - Hong Kong
Housing prices in Hong Kong are the most overvalued and at the greatest risk of collapse, according to a report focused on 20 major cities.
"Major imbalances" are also found in Stockholm, Paris, San Francisco, Frankfurt and Sydney, the report said.
The UBS researchers found a widespread breadth of the rise in property prices in major cities with prices increasing 35% on average over the last five years.
They identified price bubbles as regularly recurring phenomenon in property, defining them as "a substantial and sustained mispricing of an asset." The report said typical signs include a decoupling of prices from local incomes and rents, as well as excessive construction or bank lending.
"Although many financial centers remain at risk of a housing bubble, we should not compare today's situation with pre-crisis conditions," Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a statement.
Photo : varchev.com
Trends, property market, real estate market, real estate bubble