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Taiwan world's highest risk of property price bubble burst:regulator

Taiwan world's highest risk of property price bubble burst:regulator

Taipei, Feb. 12 (CNA) Taiwan, which boasts the world's highest housing price-to-rent ratio, has earned another "world's highest" -- the chance of its real estate bubble bursting, the Financial Supervisory Commission warned Thursday. Citing statistics compiled by the websites Global Property Guide and Numbeo, the regulator noted the total costs of property ownership in Taiwan is 64 times the cost of renting a similar property and rising. Nearby, the ratio in Japan is 20 times, while China's is 38 and the United States has a ratio of 28. The commission added that a rental price of 2.875 percent the house's value yields a ratio of 35. Taiwan's high ratio shows how far market prices for homes have deviated from a reasonable level, meaning it is also an indicator of the increased risk of a bubble bursting, the commission cautioned. (By Wu Chin-chun and Maubo Chang)


Updated : 2021-09-26 08:44 GMT+08:00