Here's why Hong Kong's top-end homes are still the world's priciest

Despite the slew of cooling measures.

Prime prices in Hong Kong, at just over $4,000psft, are four times those of Dubai and more than twice those of Singapore.

According to a report from Savills, space, particularly prime space, is at such a premium in this high-rise city that units are particularly small and expensive.

The pressure of Chinese money on the market has pushed prices to high levels in recent years – particularly in the prime markets.

Although cooling measures have slowed the top end of the market recently, Hong Kong still hosts the world’s most expensive residential real estate.

Further, the report noted, while Hong Kong tops the ranking for mainstream values at $1,300psft, the gap between it and other cities in this sector is less marked, with London ($1,100psft) and New York ($1,000psft) not far behind.

Here's more from Savills:

It is notable that in most cities there is an entry level for prime markets at or around US$1,000. Prime values rarely fall below this in developed economies. It is as if the international market and elite workforce in world cities set their own international standards. This means that domestic markets can vary from prime markets to widely differing extents.

In New York, for example, the mainstream markets are little different to prime, on the other hand mainstream values in Shanghai are relatively low by global city standards ($400psft) but prime property values are on a par with Tokyo and New York ($1,500psft).

This means that different types of employers will find residential prices less critical than others when choosing cities in which to locate. Those employing or seeking to attract elite employees may find some cities little different compared to others, while those employing more administrative staff will find residential costs more critical.

Rio de Janeiro offers the cheapest accommodation on a price per square foot basis in both the prime ($700psft) and mainstream (less than $100psft) sectors.

Properties in Rio – along with other cheaper cities – tend to be larger, thereby diluting values on a square foot basis.

Sydney ranks mid-table for mainstream values ($500psft) but ranks low for prime prices per square foot ($850), largely because prime Sydney properties tend to be much bigger than their international counterparts. Here the most desirable prime properties are often very large houses, rather than citycentre flats.