Boomtowns
The housing bubble may have burst in the United States and Western Europe. But, in cities around the world, irrational exuberance in the residential market lives on.
Singapore
Singapore
2007 price jump: +31 percent
Risk factor: MODERATE
A recent wave of large property redevelopments has led to a temporary shortage of housing, causing higher prices and rents. But many of those properties are now coming back on the market, and coupled with a cooling global economy, Singapore’s housing market will likely slow.
Shanghai
2007 price jump: +28 percent
Risk factor: LOW
To stop speculation on residential properties, the government recently imposed new limits on foreign investment. But rapid urbanization, high demand, and the Shanghai World Expo in 2010 spell sunny forecasts for Shanghai homeowners.
Istanbul
2007 price jump: +11 percent
Risk factor: LOW
Istanbul’s housing market is just beginning to boom, thanks to new mortgage legislation and a housing shortage that’s driving prices upward. This year, PricewaterhouseCoopers deemed the city the second-best property investment market in Europe.
Moscow
2007 price jump: +21 percent
Risk factor: HIGH
A strong Russian economy has meant stratospheric prices for apartments around the city, leaving residents priced out of the market to look elsewhere. That’s led to renewed interest in suburban properties and investments overseas.
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