Keep Saving, Hong Kongers


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POSTED BY Ed (2 mths ago)
It takes around 35 years for a median-income household to buy a 90-square-meter (970 square foot) apartment in Hong Kong. So, by 2052 in other words. That makes the former British colony the world's least affordable city, according to Oxford Economics. Now, with Chinese buyers forking out ever-higher amounts for land sold by the government and outbidding domestic stalwarts, prospective home buyers are going to have to wait a whole lot longer.

Hard Slog

It takes a household with local median income 34.95 years to buy a 90-square-meter apartment in Hong Kong versus 33 years in Beijing and just over 16 in New York

A stamp-duty hike in November to 15 percent for all non-first-time home buyers and to as much as 30 percent for foreigners hasn't dulled the market. Secondary home prices surged almost 40 percent between July 2012 and the end of last year, Centaline Property's Centa-City Leading Index shows, just 1.8 percent shy of their September 2015 record.
UP, UP AND AWAY

Although the increased levies helped put a lid on sales volumes, there's still more end-user demand than supply, according to Bloomberg Intelligence analyst Patrick Wong. First-home buyers, being exempt, remain a force while existing homeowners always seem to find ways to circumvent the rules in their hunt for yield. Hong Kong's relatively low unemployment rate also means lots of people are willing to take the real-estate plunge.Added pressure, meanwhile, is coming from China.


Mainland purchasers, keen to buy property in the city as a hedge against a weaker yuan, have long been imaginative when it comes to evading foreign-exchange curbs. Now developers are getting more aggressive.

More https://www.bloomberg.com/gadfly/articles/2017-01-19/keep-saving-hong-kongers

COMMENTS

Ed (2 mths ago)
Hong Kong Tops Survey of World’s Least Affordable Home Market

Home in Hong Kong costs 18.1 times median pretax income
Prices hovering 2.6 percent below September 2015 record

Hong Kong retained its rank as the most expensive housing market among 406 major metropolitan regions in the annual Demographia International Housing Affordability Survey for the seventh year in a row.

The median price of a home in Hong Kong last year was 18.1 times the median annual pretax household income, the survey showed. That’s a modest improvement in affordability compared with last year’s 19 times, which was the highest multiple in the 12 years Demographia has been conducting its research.

https://www.bloomberg.com/news/articles/2017-01-22/hong-kong-tops-survey-of-world-s-least-affordable-home-market


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