Demand for small to medium sized units continue to strengthen.
Home prices in the world’s least affordable housing market rose 14.9% YoY in Q1, according to real estate consultant Knight Frank, putting Hong Kong at the top of the global home prices index after registering the largest price growth in the world.
On a quarter-on-quarter basis, home prices rose 4.6% even amidst heightened supply scenarios, with over 96,000 apartments set to be released in the next three to four years.
Demand for small to medium-sized units continue to record the strongest price growth, Knight Frank added, as residents have to make do for nano and micro homes in space-starved Hong Kong.
“Whilst most Asia-Pacific markets saw moderate house price growth in Q1 2018, Hong Kong’s 4.6% quarter-on-quarter and 14.9% year-on-year growth made it the fastest riser globally over the last 12 months,” said Knight Frank head of research for Asia-Pacific Nicholas Holt.
An average Hong Konger earning $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.
The small Mediterranean Island of Malta scored second place in the Knight Frank global home price index after rising 13.6% YoY in Q1 whilst Iceland (13.2%), Ireland (12.7%) and Jersey (12.1%) complete the top five.
On the other hand, European countries Greece (-0.2%), Italy (-0.3%), Norway (-1.1%) and Finland (-1.3%) all sit within the bottom ten rankings.
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