Which are the top 6 cities in the world which are at risk of a property bubble? Sorry, Singapore is not one of them. Kuala Lumpur is nowhere in the list too. In fact not even a single city in South East Asia made the list. Let’s heave a sign of relief. As per UBS’ Global Real Estate Bubble Index, the top six cities are as follows: (In order of severity. No. 1 means most likely) Full article in The Telegraph here.
- Vancouver (Canada)
- London (Britain)
- Stockholm (Sweden)
- Sydney (Australia)
- Munich (Germany)
- Hong Kong (China)
It also stated that house prices in London is 15 percent higher than the 2007 market peak but incomes are 10 percent lower. (Unsustainable property prices is definitely a major cause. Earlier article here: Spotting signs of a property bubble, 3 points (Updated) Hong Kong is however even more unaffordable than London when taking into account the house prices increase versus average earnings. (In Hong Kong, even taxi licenses become a prized investment. Read here: Even taxi licenses are over RM4 million) According to the report, last year only Hong Kong and London was in the list of risk for a bubble. This year, there are 6.
Currency exchange aside, looking at just the number. Do google for ‘Vancouver’s median price’ and get very surprised. It’s easily over 1.1 million in Canadian Dollars. (RM3.4 million) , London’s average home price is at £600,625 (RM3.09 billion) , Sydney’s at AUD1,021,968 (RM3.26 million) and Hong Kong’s prices, well not that important. Mosquito flats (163 sq ft) are already HK$4 million per unit. (RM2.16 million). Okay, enough of general knowledge about the property market for today. Happy following.
written on 13 Oct 2016
Next suggested article: Melbourne’s median house price is now at $740,995