Tuesday, 25 January 2011

Fact of the Day: HK has World's Most Expensive Homes

People in Hong Kong knew this already, but a new international housing survey confirms Hong Kong homes are "severely unaffordable".
The city beat London, New York and San Francisco for the dubious honour.
The median home in Hong Kong costs 11.4 times gross annual median household income, according to US-based consulting company Demographia, which examined housing affordability in six countries and Hong Kong for the third quarter of 2010.
This was the first time Hong Kong was included in the survey that compares major cities in countries such as Australia, Canada, Ireland, New Zealand, the UK and United States.
In the report, Los Angeles was the only city that equalled or exceeded Hong Kong's "median multiple" (the median house price divided by gross annual median household income) in the seven-year history of the survey.
Places where home prices were 5.1 times household income or more are considered "severely unaffordable" by the report.
In the past two years, home prices in Hong Kong have surged 50 percent thanks to low interest rates and buyers from the mainland.
As a result, many young Hong Kongers cannot afford to buy a home as their salaries have not risen along with the prices, creating social and political problems for the government.
It's interesting to note Sydney is second at 9.6 with Vancouver following close behind at 9.5.
One wonders what Chief Executive Donald Tsang will say about the report. It's shameful that flats in Hong Kong have gone way beyond what most people can afford now.
People here are tired of the government pandering to developers and big business. It's time the government finally take a stand for the people and ensure more affordable housing for everyone.
The rankings of some of the cities:
1. Hong Kong (11.4)
2. Sydney (9.6)
3. Vancouver (9.5)
6. London (7.2)
15. New York (6.1)
30. Dublin (4.8)
48. Ottawa (3.6)
82. Atlanta, Georgia (2.3)

1 comment:

  1. i am surprised to learn new york is only 6.1 while london 7.2. but what about tokyo? or paris, rome.... used to be pretty expensive too. how about cities in switzerland?