Some Cities Facing Property Bubble

Last week, Min Zhu, an economist from the International Monetary Fund, published an article titled “Era of Benign Neglect of House Price Booms is Over,” in which he sounded the alarm over rising global home prices. This isn’t the first time that economists are warning of housing bubbles forming around the world.

Among the dizzying house price surges in major cities, London climbed 20 percent over the past 12 months, while Dubai was up 36 percent. In Germany, prices in major cities have increased more than 30 percent over the past five years, according to Berlin-based research firm Bulwiengesa.

In China, overall new home prices fell for the third month, government data showed on Monday, as government-imposed restrictions took the wind out of the frothy market. Still, prices in Beijing rose 4 percent on-year. Meanwhile, measures to rein in home prices are also taking effect in Hong Kong where house prices fell 0.6 percent on-year in June.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.