Bubble trouble brewing in the housing market
Back to Topic
Click to Print
Useful Websites
Glossary Term Selection
With property prices around the world now growing by double digits, how big a risk are central banks running?
By Russell Lynch, Economics Editor
Nearly 15 years after a burst housing bubble tipped the world into the worst financial crisis for a century, booming property markets are triggering an uncomfortable sense of déjà vu.
From New Zealand to South Korea, prices are soaring. An Auckland fixer-upper, which couldn’t even boast its own toilet, changed hands for more than NZ$2m (£1.1m) this month; meanwhile 6,000 miles away in Seoul, authorities are racing to curb an overheating market. In the US, prices are rising at the fastest pace for more than 30 years, and over here a buyer “frenzy” has driven the busiest first half on record, according to property website Rightmove.
Agent Knight Frank sees further signs of the froth in its latest global cities index, which monitors prices in 150 major markets and is now rising at its fastest pace since 2006. Kate Everett-Allen, head of intern...
Want to see the rest of this article?
Would you like to see the rest of this article and all the other benefits that Issues Online can provide with?
- Useful related articles
- Video and multimedia references
- Statistical information and reference material
- Glossary of terms
- Key Facts and figures
- Related assignments
- Resource material and websites
