Market analysts from Bank of America Merrill Lynch and Credit Suisse have given a bullish outlook for the Chelseas market, saying the demand for housing is rising faster than demand for goods.
The Chelsas market is in its third year of growth.
There are over 300,000 homes in the market, and they are up more than 10 percent year-over-year.
The average price of a home is up 13 percent year over year, the analysts said in a note.
The median price of the homes is up 15 percent.
They also forecast home prices will average between $1.7 million and $1 million in the next six months.
The Chelese market is not alone in the country, with home prices rising faster across the board.
As the economy improves, many cities are experiencing record-high home prices, said David Hahn, a senior economist at Bank of Japan.
They have seen increases of 30 percent or more.
In Chelsa, the price of homes increased by 22.4 percent in the first quarter of 2017 compared to the same period last year, while prices of other homes in town increased by 12.2 percent.
The price of housing in the city is also up by 15.5 percent in a year, with median prices of homes increasing by 9.6 percent, according to the analysts.
“The real estate market is on a bubble,” said Yuka Kobayashi, an analyst at Bank Of Tokyo-Mitsubishi UFJ.
“The demand for real estate is skyrocketing, and that is creating an unprecedented amount of demand.
This is creating a glut in the housing market.”
The housing market has become so large that a major project in Chelsaa, a town of over 400,000 people, is now being built.
It is expected to create 200,000 jobs and generate over $1 billion in economic activity.