Both Hong Kong and Singapore experienced soaring property prices after the financial crisis. Singapore implemented regulatory measures that successfully cooled down the market. Hong Kong also took regulatory steps, but price growth remains strong.
CNBC found that Hong Kong and five other world cities — London, Stockholm, Sydney, Munich, and Vancouver — are most at risk for a bubble. Housing prices in each of those cities have increased by 50 percent on average since 2011.
The discrepancies have emerged out of a mix of optimistic expectations, capital inflows from abroad and loose monetary policy. The weak economic foundations of the latest price boom make the housing markets in those cities vulnerable.
