House prices are bubbling over in several of the world's top cities, says UBS, which has created a Global Real Estate Bubble Indexto measure the potential for housing bubbles. Here are the five most at risk, with their index score. A score over 1.5 is a "bubble risk", while a score between 0.5 and 1.5 is "overvalued".
1. London 1.88
UBS reckons London is the most overvalued market, based bothon price-to-income and price-to-rent ratios. Average real (afterinflation)dwelling prices are up by almost 40% since the startof 2013, more than offsetting all financial-crisis-related losses.House prices no longer bare any resemblance to local householdearnings due to purchases for investment purposes by both localand global buyers.
2. Hong Kong 1.67
3. Sydney 1.39
4. Vancouver 1.35
5. San Francisco 1.15
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