Home ownership plunges below 50% in 2017 as prices skyrocket
Only 49.2% of households own their occupied homes, representing the lowest level since 1999.
Bloomberg reports that homeowners are now a steadily decreasing minority in Hong Kong as only 49.2% of domestic households own the spaces they occupy as of 2017, a testament to the growing unaffordability of residential prices in the world’s most expensive housing market.
Also read: Home prices climb for the 23rd consecutive month in March
Home ownership levels peaked at 54.3% in 2004 but has been on a decline since 2011, hitting an all-time low last year never before seen since 1999.
In a breakdown, the local statistics agency noted that over a third (31.8%) of domestic households own their homes in public sector housing whilst home ownership levels are higher for private sector housing at 63.8%.
When pitted against Singapore, where government housing remains accessible, the home ownership rate exceeds 90%.
An average Hong Konger who earns $50,000 in annual income would need around $900,000 to purchase a home as the city ranks as the most expensive housing market for the eighth year in a row, according to annual Demographia International Housing Affordability Survey, which puts the median house prices divided by annual median household income at 18.1.
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Photo from WiNG - Own work, CC BY 3.0