HK homes among the least affordable in Asia

Hong Kong’s median home price of over US$1.1 million (HK$8.58 million) is 25.1 times the median annual household income.

This puts it among top four least affordable cities for homes in the Asia-Pacific region, a report by Urban Land Institute showed.

Shenzhen tops the chart with a ratio of 32.3 times, followed by Beijing, Ho Chi Minh City, Hong Kong and Metro Manila, respectively with 28.7, 25.3, 25.1 and 25.0, the report said.

Rapid urbanization and population growth in these capitals and economic centers are blamed for the gaps.

The SAR’s population rebounded last year by a net of 170,000 with some 80 percent of them coming from the mainland as the government introduced a Top Talent Pass Scheme, the ULI report said.

It said Hong Kong continued to stand out as the most expensive housing market in 2023 with a median home price of over US$18,000 per square meter.

The average home size of 50 square meters was also the smallest among developed economies in the region.

ULI said Hong Kong developers maintained an inventory of unsold units large enough for two-and-a-half years of consumption whereas the new supply of private homes dropped to 14,000, compared with 23,000 unsold units at the end of last year. This indicated there is a surplus of unsold units, it said.

Meanwhile, the Buildings Department approved 15 plans in March, including four on Hong Kong Island, two in Kowloon, and nine in the New Territories.

CK Asset (1113) got permission to build in Sai Ying Pun a 38-floor residential apartment development with a gross floor area of 111,746 square feet and non-residential area of 17,340 sq ft.

In other news, Wheelock Properties will launch sales of 154 flats at Park Seasons in Lohas Park this Saturday, priced from HK$4.55 million to HK$7.78 million and at an average of HK$14,997 per sq ft after discounts, compared to the previous batch of 168 flats priced at an average of HK$15,039 per sq ft.

The cheapest flat on offer is a 322-sq-ft one-bedroom unit, costing HK$4.55 million or HK$14,118 per sq ft, while lowest price per sq ft goes to a two-bedroom unit with an area of 453 sq ft selling for HK$6.35 million or HK$14,018 per sq ft.