Ranked: The Cities With the Most Bubble Risk in Their Property Markets

[beijingwalker]

Ranked: The Cities With the Most Bubble Risk in Their Property Markets​

October 26, 2023
By Pallavi Rao

Which Cities Have Bubble Risk in Their Property Markets?​

Buoyed by low interest rates for the last decade, many property markets have seen substantial price growth since 2010. Experts warned that real estate bubbles—in which the price of assets moved up far beyond their intrinsic value—were forming.

The UBS Global Real Estate Bubble Index analyzes the real estate market of 25 major cities across the globe and assigns them a score between -0.5 to 2.0 to convey bubble risk. The higher the score, the more imbalanced the market is, with those above 1.5 in “bubble-risk” territory.

We visualize the data in the above map, along with charting the real property price changes in the last year.

Ranking Bubble Risk by City​

At the top of UBS’ findings is Switzerland’s financial capital Zurich, with a 1.71 score, putting the city firmly in the bubble-risk zone. With its high-income earners and the country’s low interest rates, the city has been steadily climbing the real estate bubble-risk rankings, 5th in 2021, to 3rd in 2022, to the top spot this year.

Unlike many of its former peers in the risky territory, local prices adapted to increased mortgage rates this year, and have stayed elevated.

Here’s the full rankings for bubble risk in all 25 property markets:

Ranked: The Cities With the Most Bubble Risk in Their Property Markets

Despite higher mortgages and sharply correcting prices, some cities’ property markets are still in bubble-risk territory.

www.visualcapitalist.com

 

[Bilal9]

Stockholm's ranking is a telling story. It's not just variable rate financing, people are leaving in droves.

Their tourism also took a hit.

They are desperately advertising in US media to ask foreigners to visit their troubled land.

 

[beijingwalker]

If you read only from western media, you would have thought that all top 25 cities were in China.

 

[Han Patriot]

Actually Chinese properties are still cheaper than Western ones and Xi popping the bubble early on is good.

 

[Stranagor]

If you read only from western media, you would have thought that all top 25 cities were in China.

China was not included in the analysis. If you go and look at the Methodology in the original UBS study, it included 25 cities around the world, and listed them according to various benchmarks. It has been so since 2016, when the index was first published. Always these 25 cities were included because there is reliable data.

CCP is probably withholding data due to national security sensitivities. Another reason could be because there is no private freehold real estate ownership in the CCP land.

 

[beijingwalker]

CCP is probably withholding data due to national security sensitivities. Another reason could be because there is no private freehold real estate ownership in the CCP land.

Lol, funny and ironic from someone who is WITHHOLDING his true nationality.

 

[Stranagor]

Lol, funny and ironic from someone who is WITHHOLDING his true nationality.

The point of the above post was just that your argument was/is factually wrong. China has not been included in the analysis. So, the ranking does say nothing about property situation in China.

As for the usual propaganda and information warfare tactics you employ:

I find it amazing how you evade the CCP Police in climbing the wall - if you are really the one you claim to be (I heard foreigners are currently somewhat spared).

if you don't believe in me, listen to this lovely CCP Police. I saw a longer version of the screenshots I share below. The police were warning that you cannot even use VPN to spy on other CCP citizens to report their misbehavior on Twitter/X etc.

Either no one gives a damn about laws, or there is something fishy with your identity.

 

[beijingwalker]

The point of the above post was just that your argument was/is factually wrong. China has not been included in the analysis. So, the ranking does say nothing about property situation in China.

As for the usual propaganda and information warfare tactics you employ:

I find it amazing how you evade the CCP Police in climbing the wall - if you are really the one you claim to be (I heard foreigners are currently somewhat spared).

if you don't believe in me, listen to this lovely CCP Police. I saw a longer version of the screenshots I share below. The police were warning that you cannot even use VPN to spy on other CCP citizens to report their misbehavior on Twitter/X etc.

Either no one gives a damn about laws, or there is something fishy with your identity.

View attachment 967704

View attachment 967707

View attachment 967708

View attachment 967709

Lol, funny and ironic from someone who is WITHHOLDING his true nationality.
Where are you from? A secret society?

 

[ST1976]

Actually Chinese properties are still cheaper than Western ones and Xi popping the bubble early on is good.

western economies would be no more than 20% of the GDP, they show to world.........
a bubble within they had realised during 2008 recession, which they continued with upto now.....

 

[ST1976]

double post

 

[ApparentRaceTraitor]

Ofcourse Toronto and Vancouver are on the list, thank heavens I bought my home elsewhere. And now real estate agents are knocking on our doors everyday asking if we want to sell with all the Vancouverites and Torontonians moving here en masse.

The problem with Canadian real estate is every Tom, Baljeet, Ram and Mohammed want to move only to Toronto or Vancouver; end of story (maybe Montreal as well), live amongst only their own countrymen and make these cities and surrounding areas bigger cultural ghettos than they already are.

 

[khansaheeb]

UAE realtors plan $25bn investment

Announcement made by a strong delegation of UAE real estate companies during their visit to Association of Builders and Developers of Pakistan.

www.dawn.com

 

[KAL-EL]

Lol, funny and ironic from someone who is WITHHOLDING his true nationality.
Where are you from? A secret society?

He's from The Zeta reticuli star system which is nearly 40 light years away

 

[ST1976]

Ofcourse Toronto and Vancouver are on the list, thank heavens I bought my home elsewhere. And now real estate agents are knocking on our doors everyday asking if we want to sell with all the Vancouverites and Torontonians moving here en masse.

The problem with Canadian real estate is every Tom, Baljeet, Ram and Mohammed want to move only to Toronto or Vancouver; end of story (maybe Montreal as well), live amongst only their own countrymen and make these cities and surrounding areas bigger cultural ghettos than they already are.

what you think, hows long will it take to reach 'bubble'-bottom of US-west economies?
i would say by end 2024, won't take longer i guess

 

[ApparentRaceTraitor]

what you think, hows long will it take to reach 'bubble'-bottom of US-west economies?
i would say by end 2024, won't take longer i guess

Well I would rather see a paradigm shift to a hybrid socio-capitalist economy where "endless growth" in share price, and continued profit margins year after year aren't the norm, but I guess the sad reality is we will continue to see the economy propped up on strengthening corporate profits through replacement of citizens with the mad rush to import cheap brown labor keeping minimum wage down while propping up the housing market through the increased demand from said cheap brown labor.

Doesn't matter whether your party is Liberal or Conservative, Democrat or Republican, at the end of the day behind closed doors they all get on their knees in a mad rush to "service" their corporate backers.

Still I see us doing a heck of a lot better than other places 5 years from now.