(Sept 28): 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 in its 2016 Global Real Estate Bubble Index report, released Tuesday. San Francisco ranked as the most overvalued housing market in the US, while not yet at bubble risk.

House prices in the near-bubble cities have increased on average by almost 50% since 2011, compared with less than 15% 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.

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