New research by Deutsche Bank finds NZ is the third-most over-valued country for housing in the world - at least in terms of of the home price-to-rent ratio's percentage above its historic average.
Deutsche Bank economists Peter Hooper, Torsten Slok and Matthew Luzzetti ranked different countries by two ratios: home prices to income and home prices to rent.
Those ratios were then compared to their historic norms to gauge whether each country's housing market was over or under-valued.
The report finds New Zealand is the third most overheated market, running 77% ahead of its historic home price-to-rent ratio.
In terms of home prices to income, New Zealand is sixth-most overvalued, running 26% ahead of its historic ratio.
Wall Street Journal analysis of the Deutsche Bank study notes Canada - the most overvalued market - is "very open to foreign investors" at a time of unprecedented global liquidity.
By contrast, Japan - the most undervalued market - is the most closed to foreign investment.
The Journal speculates that Belgium is a special case. The European economic crisis has seen an influx of diplomats and other activity in Brussels, home of the EU Parliament and bureaucracy.