London Houses are second most over-valued in the world – UBS
Swiss bank UBS has compiled a ”Bubble Index” which ranks London as having the second-most overvalued property prices in the world. London is topped only by Vancouver – which has recently seen an influx of Chinese investment. The UBS list indexes property prices in 18 cities against their countries’ current economic conditions, concluding that Stockholm, Sydney, Munich and Hong Kong are also in bubble-territory.
UBS Wealth Manager, Claudio Saputelli, puts the bubble down to excessively low interest rates, and warns that where there is any risk of either a rate hike or a global shift in the flow of capital, there could be a sharp correction – effectively bringing house prices into line with the ‘real’ local economy.
For more detail on the UBS Bubble Index, read the Housing Market article in the Guardian here.
- Charlotte Wilkins