Quote:
Originally Posted by Fuzz
I do sometimes wonder if our housing costs have been artificially lower than a lot of the rest of the world(I'll leave out the US), which is also one of the reasons we have such demand from foreign investors. If it wasn't undervalued, why invest? Are we just rising to where we should be, rather than it being a bubble?
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It's a complex problem with many causes. Still, there are plenty of reasons to invest in an already overvalued asset. Unregulated financial markets often see speculative bubbles (see cryptocurrency booms in 2021). The cynical view is that coordinated action from big investors drive the price up so they all get rich. Foreign money laundering also impacts the bubble but I'm not sure how much.