VANCOUVER, LONDON AT GREATEST RISK OF HOUSING CRASH

Vancouver, London and Stockholm rank as the cities most at risk of a housing bubble after a surge in prices in the past five years, according to a UBS Group AG analysis of 18 financial centres. Sydney, Munich and Hong Kong are also facing stretched valuations, UBS said Tuesday. House prices in the nearbubble cities have increased on average by almost 50 per cent since 2011, compared with less than 15 per cent in other financial centres, UBS said. Low interest rates, global capital inflows and optimism among investors about returns have helped to inflate values, the bank said. “A change in macroeconomic momentum, a shift in investor sentiment or a major supply increase could trigger a rapid decline in house prices,” UBS said.