HK Sets New Record For Least Affordable Housing

Hong Kong homes have created a new record on unaffordability as the city continues to top the list of least affordable housing markets in the world for the ninth consecutive year.

An urban planning policy consultancy Demographia, which carried out the global survey, said housing in Hong Kong is severely unaffordable with an overall median multiple of 20.9 – the highest ever reported in the survey and up from last year's 19.4.

The figure means it takes an average Hong Kong family 20.9 years to earn enough money to buy a flat and as long as they don't spend a single cent.

Second to Hong Kong is Vancouver followed by Sydney. The survey, which covered more than 300 cities, found the most affordable place to own a home is in Cape Breton in Canada.

The report said that the affordability survey is like a health check. It compared the survey result to an abnormally high blood pressure in an individual, indicating the need for urgent corrective action.

The survey also mentioned that some real estate experts are projecting that home price in Hong Kong may drop by 15 percent to 25 percent this year.

"While that would be a significant decline, Hong Kong’s housing would continue to be severely unaffordable by a large margin," it said.