It’s already the world’s most expensive housing market. And it just keeps getting more expensive.
In the second quarter, the proportion of income spent on mortgages in Hong Kong—a measure known as the housing affordability ratio—hit 67 percent, shooting up from 56 percent earlier in the year, accoriding to Bloomberg.
On average, a household earning median income would need about 18 years to be able to afford a home in Hong Kong. Overall flat prices were 94 percent higher in June compared to 1997, according to government statistics.
Residential transactions increased by 43 percent during the second quarter, which helped contribute to the rising prices.
Like New York, finding a decent sized place to live in Hong Kong can already be difficult, with one new housing development in Hong Kong’s Happy Valley offering apartments with usable floor areas of 61 square feet. This makes them a touch smaller than prison cells located 30 minutes away. [Bloomberg] – Eddie Small