Where is the greatest bubble risk in 2018?
Bubble risk appears greatest in Hong Kong, Munich, Toronto, Vancouver, London and Amsterdam. Major imbalances also characterize Stockholm, Paris, San Francisco, Frankfurt and Sydney.
This year's study highlights increasingly strained affordability. Buying a 60m2 apartment in most world cities exceeds the budget of most people who earn the average annual income paid in the highly skilled service sector.
Prices continue to soar, but in half of the cities in the study, housing markets are booming with inflation-adjusted prices rising at least 5% in the last four quarters. However, in the other half of the cities house prices were stalling or declining.