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johnwai82

HK home prices most unaffordable for 8th years straight

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Source: Ejinsight

The government will find it difficult to reverse the trend of rising home prices because Hong Kong is a free economy, an academic said. Photo: HKEJ

Hong Kong is still the world’s most expensive city to live in as disparity between the median home price and the median household income continues to expand, according to the 14th Annual Demographia International Housing Affordability Survey. The 2018 edition of the survey, conducted by urban planning policy consultancy Demographia in the third quarter last year, covered 293 cities in nine countries, including China, the United States, Australia, the United Kingdom, Canada, Singapore, Japan, New Zealand and Ireland. Hong Kong was the only Chinese city that was ranked.

The results unveiled on Monday showed Hong Kong topped the list for the eighth year in a row, with home prices regarded by Demographia as being “least affordable”. The median multiple, or the ratio of the median price of property to the median household income, was 19.4 times in Hong Kong, as the former was found to be HK$6.192 million and the latter HK$319,000, according to the survey. That means it will take 19.4 years for an average household to afford an apartment in Hong Kong even if there were no other expenses. The figure was up from 18.1 times a year earlier and the highest level ever recorded since the survey began in 2005.

The other cities in the top five were Sydney, Vancouver, San Jose and Melbourne. Their median multiple was 12.9, 12.6, 10.3 and 9.9 times, respectively. Based on Demographia’s definition, a city with a median multiple of 5.1 or exceeds the 5.1 times mark is considered “severely unaffordable”. Citing data from the Chinese University of Hong Kong, it said the median multiple in Hong Kong was only 4.6 times in 2002, but continued to rise and reached 15.7 times in 2015, the Hong Kong Economic Journal reported.

Professor Terence Chong Tai-leung, executive director of Lau Chor Tak Institute of Global Economics and Finance at the Chinese University of Hong Kong, said the city has seen home prices rise relentlessly over the past years, and the government will find it difficult to reverse this trend because it is the product of a free economy. While the government can impose restrictions on home purchases as Beijing does, reaching the goal of “Hong Kong property for Hong Kong residents” will come at the expense of the city’s status as a free economy, Chong said. He advised the public not to expect  Hong Kong’s home prices to fall and urged the government to study the feasibility of lowering down payment requirements for home buyers so that they can purchase their own homes as early as possible.

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oh darn. i still want to go visit hong kong though. 

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This is not a good news for young people as they may not be able to afford to buy their own house.  Also these could affect the tourism.

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As the rich get richer, the ordinary family of 4 will have to struggle to make ends meet.  And with the rich cutting corners to make a quick buck, the buildings will crumble faster than it goes up.  If you're going to do something, just do it right at least.

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This is not a good news for younger people but this is not a surprise news. :(

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that is not good. as the prices go up then people can't afford to buy a house in hong kong and they will have to go somewhere else to get their own place.

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It's not just HK that is expensive to live in.  Everywhere you go, standards of living is skyrocketed that isn't in line with ordinary people income.  The rich are the only ones that can afford to all these lavish life style.

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Yes, I remembered sharing a  hotel room with my colleague  and it was so small. We kept colliding in the room. There was hardly any free space with two single beds squeezed in there. As far as i can remember, it was a four star hotel.and we were expecting a much bigger room given the high hotel rate that we have paid. We were indeed shocked and disappointed. The standard of living in Hong Kong is terribly high and it does not surprise me that the house prices are skyrocketing

Edited by cadburyho

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the apt price is going up everywhere and it is unaffordable for young generations to buy an apartment. hopefully the apartment cost would drop abit later on.

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The rich get richer.  I hear stories of bad structures being built.  Unsafe and unlivable.  There needs to be some sort checks and balance with all he housing being built.

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the housing in HK are so high and it is hard for our generation to get apt. Also the salary pay is not enough for the down payment alone.

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