
Speaking to Germany’s Bundesbank yesterday, the IMF deputy MD Min Zhu said that rising house prices are a significant threat to the global economy and called for governments to do more.
Zhu said that tightening lending requirements and putting greater capital requirements on mortgage lenders is required, along with restricting access for foreign investors to overheated markets.
The IMF Global Housing Index shows that prices are 23 per cent above where they were in 2000 and 3.1 per cent up on last year.