High housing prices, low returns: UBS warns on Taipei

UBS said yesterday that Taipei's real estate prices remain high, and Taipei's rental yield ranks at the bottom globally at just over 1 percent, so investing in Taipei real estate should be approached with caution.

UBS held its "2014 Outlook Media Briefing." Pu Yonghao, chief investment officer for Asia-Pacific at UBS Wealth Management, issued a warning about real estate in emerging Asia.

He said real estate in Asia (excluding Japan) may face deleveraging, and governments' cooling measures and new supply pose adverse risks to Asia-Pacific housing markets.

He estimated that residential prices in Hong Kong, China and Singapore will fall by 10% to 15% and 3% to 6% this year, respectively.