This list of top ten world’s most overvalued homes is taken from the latest quarterly ranking of global house prices by The Economist based on a historical data of home prices to rents between 1975-2010.

“In theory, the price of a home should reflect the value of the services it provides,” the article states.

Those who choose to rent their homes are essentially buying those services on a monthly basis and thus, the home prices should reflect the rents paid by the tenants, according to the magazine. In Hong Kong, for example, number 54 means that the price-to-rent ratio is almost 54 percent above its long-run average.

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Netherlands is known for its low unemployment rate and a GDP per capita of 42,447. With population of 16.68 million, its main sectors are agriculture, metal, and engineering products.
Netherlands is known for its low unemployment rate and a GDP per capita of $42,447. With population of 16.68 million, its main sectors are agriculture, metal, and engineering products. Reuters
7. Belgium
23.7% Reuters
5.Sweden
39.5% Freshome
4.Spain
43.7% Reuters
3.France
48.0% REUTERS
1.Australia
56.4% reverse-loans.net