A report by UBS analyzed price growth in 25 major urban housing markets around the world from the second quarter of 2019 through the second quarter of 2020.Visit Business Insider's homepage for more storiesOn a global scale, the housing market has shown strength during the coronavirus pandemic, despite the economic downturn. First, as home prices are a backward-looking indicator of the economy, UBS said they therefore react with a delay to economic downturns.
In 21 of those cities, price growth accelerated over the past four quarters, a trend that USB has called unsustainable. "The coronavirus crisis has left hardly any traces on the owner occupied market. Housing located near the city center has even benefited from increasing demand over the last few quarters," the report reads.
According to UBS, the increase is a result of low mortgage rates and a growing demand in the luxury market from foreign investors. To support this prediction, UBS points to Hong Kong's limited new construction, its history as "the key financial hub within the Greater Bay Area," people seeking citizenship there to avoid the global tax in China, and its low rate of foreclosures.
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