Fears of a massive global property price fall amid ‘dangerous’ conditions
Property prices in Sweden, New Zealand, Canada and the UK have climbed to dangerous levels, risking dramatic falls should the markets overheat, warns the Organisation for Economic Co-operation and Development.
The think tank suggests that the slow-down in UK house sales may be a harbinger of a sharp drop in prices, but depending on who pays for the adjustment, this could be good news. If the most severe drops occur in high-end properties owned by foreign investors, the adjustment could be absorbed from outside the UK – limiting the economical knock-on effects of an overall fall in house prices.
For more information on the OECD’s predictions on property prices, read the article in the Telegraph