10 hours ago
- Business
- South China Morning Post
Hong Kong tops global list for priciest homes despite property slump: Deutsche Bank
Hong Kong remains the world's most expensive city to buy a home, despite a 20 per cent decline in prices over the past five years, according to the Deutsche Bank Research Institute's Mapping the World's Prices report.
Despite economic headwinds and high mortgage costs, the average price for a flat in the city centre stood at US$25,946 per square metre – keeping Hong Kong ahead of rivals like Zurich, Singapore and New York, according to the report released on Tuesday, which covered 69 cities globally.
The sky-high property prices also dragged down Hong Kong's quality of life ranking to 48th globally, as residents struggled with affordability, the report said.
In terms of housing affordability – measured by mortgage as a percentage of income – Hong Kong, at 150 per cent, ranks in the top quarter among the world's least affordable cities, as high mortgage payments eat into after-tax income.
Beijing (220 per cent) and Shanghai (207 per cent) rank sixth and seventh, respectively, globally because of elevated home prices and relatively uncompetitive salaries.
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How Hong Kong's housing market became among the world's most unaffordable
How Hong Kong's housing market became among the world's most unaffordable
The report reflects the Demographia International Housing Affordability survey from 2024, when Hong Kong retained its dubious distinction as the world's most unaffordable property market for the 14th straight year. The average family would have to bank its entire income for 16.7 years, down from 18.8 years in the previous year, to cover the average selling price of a home in the city.
