Australia housing bubble...... Sydney housing market fourth on...

Australia housing bubble......

Sydney housing market fourth on global bubble index

Bubble trouble in majority of global financial centres

The report analysed residential property prices in 18 major financial centres and found that home prices were overvalued in a majority of the cities.

The report judged Vancouver in Canada as most at risk of a housing bubble, followed by London, Stockholm, Sydney, Munich and Hong Kong.

"What these cities have in common are excessively low interest rates, which are not consistent with the robust performance of the real economy," the report warned.

"When combined with rigid supply and sustained demand from China, this has produced an ideal setting for excesses in house prices."

The report warned that the housing bubble could burst in risky markets especially if interest rates or property supply increased.

"The situation is fragile for the most overvalued housing markets," it warned.





The Bloomberg article which is more detailed. Sydney is No.4 on this list...but Australia debt/GDP is very high....which is not included in this article. I believe the ABC article losely was inspired by the Bloomberg artilce LOL. There is simple too much details from the bloomberg article in the ABC article. Might have to report this to media watch LOL.

Vancouver, London Top List of Cities at Risk of Housing Bubble


Vancouver, London and Stockholm rank as the cities most at risk of a housing bubble after a surge in prices in the past five years, according to a UBS Group AG analysis of 18 financial centers.
Sydney, Munich and Hong Kong are also facing stretched valuations, UBS said in its 2016 Global Real Estate Bubble Index report, released Tuesday. San Francisco ranked as the most overvalued housing market in the U.S., while not yet at bubble risk.

http://www.bloomberg.com/news/artic...-top-list-of-cities-at-risk-of-housing-bubble