Is The Global Real Estate Bubble Starting To Pop?

Many of the world’s largest cities are in massive speculative bubbles. The question is has the global housing bubble started to pop? Here’s some insight…

by Mark O’Byrne of GoldCore

Are Global Property Bubbles Starting To Burst?

– London, Dublin, Sydney, Vancouver and Hong Kong property prices fall as global risks increase…

– Property bubbles in many cities internationally according to The Economist, UBS and others
https://www.bloomberg.com/news/articl…

– UBS found that six of the world’s largest cities are now subject to a massive speculative housing bubble – Hong Kong, Munich, Toronto, Vancouver, Amsterdam and London…
https://www.ubs.com/global/en/wealth-…

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 even a small 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 in some cities but in half of the cities cited as having “bubble risk” or “overvalued”, house prices were stalling or declining.

Brexit and bursting property bubbles including London impacting sentiment overvalued Dublin housing market

– House asking prices fall 2.5% in Dublin and by almost 1% nationally
https://www.irishexaminer.com/breakin…

– Dublin housing prices are 25% overvalued according to The Economist magazine
https://www.irishtimes.com/business/e…

– Irish consumer confidence falls sharply amid Brexit fears and increase in cost of living
http://www.thejournal.ie/consumer-con…

Australian house prices dragged down 2.7% by Sydney and Melbourne
https://www.theguardian.com/australia…

“Experts” and much maligned contrarian indicator taxi drivers cite the “limited supply and strong demand” however similar arguments were made by so called experts in 2007.

Demographics … Demographics can change very quickly indeed as did… Important to understand that all markets, including property markets, are very sentiment driven. As long as the majority of investors, buyers believe prices will go up, they tend to go up. However, when sentiment changes from bullishness to bearishness then, prices begin to fall.

Minsky theory of that Stability Breeds Instability…