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Hong Kong’s unaffordable housing

There’s no way I could buy a home in my birthplace just across the straits, unless my income exponentially increases significantly. Always famous for its expensive real estate, Hong Kong’s property prices have become even steeper lately, having risen an average of 18% since 1983. Not only are home prices expensive, but the homes are small as well, even more so than Taipei, with apartments even being subdivided to house families. The WSJ has 2 articles that looked at Hong Kong’s high property prices, which has even earned them criticism from China, and it seems even the upper classes are finding it hard to afford new homes. There is actually faint reason for optimism for the future with the government there taking some financial measures and admitting it needed to build more private flats. Rich Chinese buyers have been blamed for buying up hugely expensive properties, which critics for some reason and maybe for no other good one other than Chinaphobia, say pushes up the prices of real estate significantly. Yes, I suppose so, besides the fact that the amount of residential land is limited, developers put a lot of priority into building expensive homes rather than affordable and public housing, and that Hong Kongers themselves have been buying up homes as investment. Whatever and whoever is to blame, I really hope things improve by the time I’m ready to move there.

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One thought on “Hong Kong’s unaffordable housing

  1. Wow, were you born in HKG?? It is absolutely true the housing market is in a major boom (some would say a second bubble). When I arrived there in 2008, our apartment was HKD 10,000 a month (about US $1200). By the time we left, it was renting for HKD 15,000 a month! That is almost a US $800 increase in rent. And the apartments are so small. I can’t imagine people trying to raise a family there.

    Also, we lived in Tung Chung, on Lantau Island, which is where the airport is. It is a major arrival point for new money mainlanders who come in and buy apartments for fun, for speculation, for investment. In the space of one year, the number of mainlanders in Tung Chung increased noticeably and dramatically. Instead of heading Cantonese, you predominantly heard Mandarin. It was an incredible change is a short period of time. At tourist attractions, announcements used to be made in Cantonese, English, then Mandarin. By the time we left Hong Kong, they were made in Cantonese, Mandarin, and then English. No wonder the BBC recently made a huge documentary called THE CHINESE ARE COMING!!!!

    Like

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