Australia's Sydney has the fourth riskiest housing market in the world following a sharp jump in prices in recent years, says a report by investment bank UBS released Wednesday.
Sydney's real housing prices peaked in the second half of 2015 after jumping 45 percent since mid-2012, the UBS Global Real Estate Bubble Index has found.
Other drivers for the price rises for the cities most at risk are low interest rates and bullish expectations, the report said.
Rising housing supply and further tax measures to cut foreign housing investments could end the price boom rather "abruptly", UBS has warned.
"A change in macroeconomic momentum, a shift in investor sentiment or a major supply increase could trigger a rapid decline in (Sydney) house prices," it said.
"Investors in overvalued markets should not expect real price appreciation in the medium to long run." Vancouver, Canada, topped the bubble index, followed by London and Stockholm.
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