Hong Kong ranks as one of the least affordable housing markets in the Asia-Pacific region.
Hong Kong has emerged as one of the least affordable housing markets in the Asia-Pacific region, with the median home price surpassing US$1.1 million (HK$8.58 million). This staggering figure represents a ratio of 25.1 times the median annual household income, placing Hong Kong among the top four cities with the least affordable housing, according to a report from the Urban Land Institute.
The report attributes the affordability gap in these cities to rapid urbanization and substantial population growth. In the case of Hong Kong, the population increased by a net of 170,000 last year, with around 80% of new residents coming from the mainland, largely driven by the government's Top Talent Pass Scheme.
Hong Kong continues to hold its position as the most expensive housing market in 2023, with a median home price exceeding US$18,000 per square meter. Adding to the challenges, the average home size in Hong Kong is the smallest among developed economies in the region, with an average of just 50 square meters.
Despite a drop in the supply of new private homes, the inventory of unsold homes in Hong Kong remains sufficient for approximately two-and-a-half years of consumption. At the end of the previous year, there were 23,000 unsold units, which decreased to 14,000, indicating a surplus in the market.
In recent development news, the Buildings Department approved 15 new plans in March, including residential projects in various locations across Hong Kong Island, Kowloon, and the New Territories. Notably, CK Asset received approval for a 38-floor residential apartment development in Sai Ying Pun, featuring a gross floor area of 111,746 square feet and a non-residential area of 17,340 square feet.
Furthermore, Wheelock Properties is preparing to launch sales of 154 flats at Park Seasons in Lohas Park. These units are priced between HK$4.55 million and HK$7.78 million, with an average price per square foot of HK$14,997 after discounts. This pricing is slightly lower compared to the previous batch of 168 flats, which had an average price per square foot of HK$15,039. The most affordable option is a one-bedroom unit measuring 322 square feet, priced at HK$4.55 million, or HK$14,118 per square foot. The lowest price per square foot is offered by a two-bedroom unit measuring 453 square feet, priced at HK$6.35 million, or HK$14,018 per square foot.
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