The Daily Telegraph produced this chart based on OECD data on housing markets around the world. It shows which markets are most undervalued and which are most overvalued on a price to rent and price to income ratio basis. Take a look and see how this compares to a similar analysis The Economist did.
The markets that are most overvalued are pretty similar. The British lament that the UK is in 8th place at 31% overvaluation. But there are other markets that are much worse, none of which has yet had a housing bust.
Source: The Telegraph
Also see: Problems in global housing markets (link for subscribers only)