FOR the seventh year in a row, Hong Kong has been declared the least affordable city in the world when it comes to buying a property. An apartment in the skyscraper city costs more than 18 times the annual income of an average household.
That shocking statistic has actually improved since 2015 when a flat would cost 19 times a salary, but the relationship between income and property prices remains the worst in the world.
The findings were published after an extensive survey of over 400 cities by Demographia. They followed World Bank data and terminology. The economic organisation considers a place where property prices are over 5.1 times the average salary to be ‘severely unaffordable.’
Hong Kong has some of the most expensive apartments to be found in Asia, given its prime location near China, but free from the strict regulations of the People’s Republic. There is vast wealth but also millions of people who pay more than 50 per cent of their income to live in tiny toilet sized capsules on a rooftop paying over €400 per month.
Hong Kong is way ahead of the competition in the disparity games, Sydney is a distant but nonetheless concerning second. The Australian city has prices 12 times the average annual income, just ahead of Vancouver where the ratio is 11.8. Hell for inhabitants, but heaven for investors.