Saxo Bank revealed that real estate prices in Australia, London, Hong Kong, Sweden, and Norway are currently «overvalued,» posing a risk given that the sector affects broad segments of the population. Reports indicated that average home prices in Norway are seven times the median household income, after taxes, compared to 18 times in Hong Kong, 12 times in London and its suburbs, 8 times in Sweden, and 7 times in Australia.

In a recent report, Saxo Bank explained that real estate prices in Australia rose 108 percent over 14 years, while in London and its suburbs they rose 380 percent over 21 years, in Hong Kong by 450 percent over 14 years, in Sweden by 123 percent over 12 years, and in Norway by 490 percent over 25 years.

In this context, Christopher Dembik, head of analysis at the bank, explained: «We live in a world of bubbles fueled by accommodative monetary policy and excessive liquidity, Bubbles are often difficult to identify before they burst, but we can at least agree that extreme price increases are among their most obvious characteristics—which is currently happening in many markets around the world: cryptocurrencies, the negative-yield segment of the bond market, and tech stocks. However, from a macroeconomic perspective, the most dangerous bubbles are those we have witnessed in the past, particularly in the real estate market.»