According to Bloomberg, since 2012, housing prices in Hong Kong (China) have increased by an average of 10% per year.
Hong Kong is the city with the largest real estate bubble risk in the world. Since 2012, housing prices here have increased by an average of 10% per year. The cooling measures did not have much effect. Therefore, the city is considering tightening regulations for buyers from other places.
Hong Kong also tops the list of years that workers need to work to buy a 60m2 apartment near the city center. Accordingly, a skilled employee with an average salary in the service industry will need up to 22 years.
Compared to London, the city ranked 2nd, Hong Kong was 7 years ahead.
The remaining names in the bubble risk group are Munich, Toronto, Vancouver, Amsterdam and London. UBS's report focuses on only 20 major cities in the world.
UBS commented that over the past 5 years, the average increase in real estate prices of 35% in big cities has caused a "payable crisis". Most households are no longer able to afford to buy houses in the world's leading financial centers without a large inheritance fee.
However, risks have been more controlled after the global financial crisis, as home loans have slowed down. In addition, UBS said that there is currently no evidence to show a simultaneous spike in both lending and construction activities.
In general, prices in most of the cities studied have increased significantly over the past year, compared to previous years. However, the explosive trend has reappeared in the largest economies in the eurozone, as well as Hong Kong and Vancouver.
Hong Kong is one of the most expensive real estate markets in the world, with a 60-m2 (1 bedroom) apartment with an average price of 1.48 million USD.
For a long time, the Hong Kong real estate market has been ranked the most expensive in the world due to reasons such as inadequate supply (including great demand from the continent), high speculation and a low interest rate environment.
7.4 million Hong Kongers are increasingly tired of the most expensive real estate market in the world. The survey results published in May 2018 showed that 77.7% of respondents felt dissatisfied with cramped living conditions, especially young people. They can hardly get a private house when the price of a 200-foot-square apartment (more than 18m2) can reach up to 3 million USD.
