Hong Kong has the world’s least affordable housing, said an international survey, a finding that will surely stir further discontent among residents already dissatisfied with runaway real estate prices.
Buying a home in Hong Kong costs over 11 times the average salary of the city, surpassing London, New York and other key cities, said US-based consulting firm Demographia in a recent report.
Rounding out the top four least affordable major cities are Sydney, Vancouver and Melbourne, which occupy the second, third and fourth places respectively.
The 7th Annual International Housing Affordability Survey compared household income and home prices in 325 cities in the US, New Zealand, Ireland, Hong Kong, Canada, Britain and Australia.
This was the first time that the Asian financial hub has been included in the study.
Median home prices in Hong Kong in Q3 2010 averaged HK$2.58 million, nearly 11.4 times the median household annual income of HK$225,400.
The survey said the most affordable homes in the poll were all in Canada and the US, with Saginaw, Michigan being the most affordable city, where the median home price stood at US$61,400.
Atlanta was named the most affordable major city, with a median house price of US$129,400.
Increasing real estate prices have been a key concern for Hong Kong’s seven million people.
Property bubble fears have prompted Hong Kong’s government to introduce cooling measures, which include increasing land supply and new stamp duties to shut out hot money.
Hong Kong’s home prices have surged 50 percent over the last two years driven by a robust economy, low interest rates and an influx of mainland Chinese buyers, who account for a large portion of purchases, particularly of luxury homes.