Tokyo ranks 2nd globally for housing-bubble risk

GENEVA - Tokyo ranked second worldwide for housing-bubble risk behind the Swiss city of Zurich, with the cost to buy a 60-square-meter apartment near the center of the Japanese capital topping 10 years of income for the average skilled service worker, according to an annual report by UBS.

The latest UBS Global Real Estate Bubble Index, released by the Swiss banking giant in mid-September, rated the cities as the only two at high risk for a substantial housing price correction. Meanwhile, Dubai, Seoul, Geneva and Lisbon were a notch lower in the elevated-risk category along with Miami, which ranked highest last year.