Hong Kong has the world's least affordable housing, according to an international survey, a finding that is sure to stoke anger among many residents already fed up with runaway property prices.
Buying a home in the Asian financial hub, synonymous with its super-rich tycoons and glittering financial district, costs more than 11 times the city's average salary, outpacing London, New York and other major cities, US-based consulting firm Demographia said in a report released Monday.
Sydney was ranked the second-least affordable major city, followed by Vancouver, and Melbourne.
The 7th Annual International Housing Affordability Survey compared home prices and household income in 325 cities in Australia, Canada, Hong Kong, Ireland, New Zealand, Britain and the United States.
It was the first time Hong Kong has been included in the survey.Hong Kong's median home prices in the third quarter of 2010 averaged HK$2.58 million ($330,939), about 11.4 times the median household annual income of HK$225,400.
The most affordable homes in the survey were all in the US and Canada, with Saginaw in the US state of Michigan being the most affordable city, where the median house price was $61,400.
Atlanta was the most affordable major city, where the median house price was $129,400.Rising property prices have become a major concern for Hong Kong's population of seven million.
Worries about a property bubble have prompted Hong Kong's government to announce a series of cooling measures, including boosting land supply and new stamp duties to keep out hot money.
Home prices in Hong Kong have risen 50 percent over the past two years, due to low interest rates, a robust economy and an influx of buyers from mainland China, who account for a big portion of purchases, especially for luxury homes.
Buggle Lau, chief analyst at Hong Kong property broker Midland Holdings, said he expected home prices to continue to surge in 2011, but he questioned the Demographia survey's methodology.
"The survey does not take into account more affordable housing in Hong Kong, like government housing," he said.
By AFP
[Read Posts...]
Buying a home in the Asian financial hub, synonymous with its super-rich tycoons and glittering financial district, costs more than 11 times the city's average salary, outpacing London, New York and other major cities, US-based consulting firm Demographia said in a report released Monday.
Sydney was ranked the second-least affordable major city, followed by Vancouver, and Melbourne.
The 7th Annual International Housing Affordability Survey compared home prices and household income in 325 cities in Australia, Canada, Hong Kong, Ireland, New Zealand, Britain and the United States.
It was the first time Hong Kong has been included in the survey.Hong Kong's median home prices in the third quarter of 2010 averaged HK$2.58 million ($330,939), about 11.4 times the median household annual income of HK$225,400.
The most affordable homes in the survey were all in the US and Canada, with Saginaw in the US state of Michigan being the most affordable city, where the median house price was $61,400.
Atlanta was the most affordable major city, where the median house price was $129,400.Rising property prices have become a major concern for Hong Kong's population of seven million.
Worries about a property bubble have prompted Hong Kong's government to announce a series of cooling measures, including boosting land supply and new stamp duties to keep out hot money.
Home prices in Hong Kong have risen 50 percent over the past two years, due to low interest rates, a robust economy and an influx of buyers from mainland China, who account for a big portion of purchases, especially for luxury homes.
Buggle Lau, chief analyst at Hong Kong property broker Midland Holdings, said he expected home prices to continue to surge in 2011, but he questioned the Demographia survey's methodology.
"The survey does not take into account more affordable housing in Hong Kong, like government housing," he said.
By AFP
