Major housing markets across the globe are at the risk of a real estate bubble burst in 2017, with Toronto topping the list, according to a report by UBS Wealth Management.
In the list of riskiest cities, Toronto is followed by Stockholm, Munich, Vancouver, Sydney, London, Hong Kong, and Amsterdam, UBS’ Global Real Estate Bubble Index revealed.
Go deeper with GlobalData
San Francisco was found to be the most overvalued US city this year, followed by Los Angeles. Since 2012, real house prices in San Francisco have surged 65% in the wake of the technology boom and buoyant foreign demand. In Los Angeles, the prices surged 45%, driven by demand from China.
Boston and the New York metro area were fair value. Real prices increased by 10% in the New York metro area than in 2013, while it increased 20% since 2012 in Boston. Across the US, real house prices have soared 23% since 2012.
Chicago was the only undervalued city this year, where prices increased by 15% in real terms since 2012.
In Asia Pacific, Hong Kong and Sydney are facing a greater bubble risk compared to the previous year. Tokyo has become more overvalued and Singapore remains fairly valued with reducing risks.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataUBS Wealth Management Chief Investment Office head of global real estate Claudio Saputelli said: “Improving economic sentiment, partly accompanied by robust income growth in the key cities, has conspired with excessively low borrowing rates to spur vigorous demand for urban housing.”
