UBS: Toronto’s Bubble Risk Increases, While Vancouver Is Now Just “Overvalued”

One of the world’s largest banks is seeing real estate bubbles across the world. UBS analysts published their 2020 Bubble Index, noting this many markets haven’t increased at once since 2006. In Canada, Toronto lost it’s spot as the world’s second biggest bubble to Frankfurt. Despite slipping in rank, the bank is noting fundamentals continue to get worse. Meanwhile, Vancouver real estate is no longer in bubble territory after a price drop, and is now just “overvalued.”

Global Real Estate Markets All Look The Same

UBS is seeing real estate prices rise across the world, regardless of fundamentals. The last time fewer cities with negative price growth appeared was 2006. Analysts at the big Swiss bank called the trend “unsustainable,’ considering rents. In almost every market, rental prices are on the decline. The lower they drop, the less ownership typically makes sense.

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