18 January 2018 at 12:58 GMT
• Real-estate bubbles in multiple countries
• Norway likely the riskiest housing market
• Systemic risk remains limited
By Christopher Dembik
We are in a world of bubbles fuelled by accommodative monetary policy and excess liquidity. Bubbles in financial assets are worrying, but they usually affect a smaller part of the population than do those in the property market.
The most risky real estate markets we see are Australia, London, Hong Kong, Sweden, and Norway. All of these markets share these two features: home prices are decoupled from local incomes, and the real economy is experiencing distortions linked to monetary policy, such as a surge in lending and/or a boom in the construction sector.
Saxo Bank's strategy team is out with their take on world markets for the first quarter of 2018. Download your copy now.