The global property market is on the verge of a massive hangover following decades of euphoric partying, which really began in the late 1970s with the creation of the first mortgage-backed securities (MBS). These allowed banks to offload mortgages to third parties, removing balance-sheet constraints and driving a surge in lending. This culminated in the financial crisis of 2008-2009, which marked the beginning of the second act, when the bubble received government backing.
Central banks around the world responded to the financial crisis by flooding the system with money and pushing interest rates to record lows. What was supposed to be a temporary solution became a long-term solution, and just when it looked as if some normality was going to be restored in 2019, the coronavirus pandemic arrived. More money printing followed, and interest rates fell even further.
The global real-estate bubble began in the late 1970s as funding became easier to obtain, but the next stage, from 2008 onwards, was driven almost entirely by pure speculation. The price of a property, be it a house, big-box
