Secondary market home prices rose 1.84%.
Homes in the world’s least affordable property market just got more expensive as private residential prices rose for the 25th month in a row in April, according to the Ratings and Valuation Department.
Private residential prices rose 1.84% MoM which represents the fastest pace in a year as developers shrugged off worries of prime rate hike dampening eager market take up. The rental index advanced 0.42% to 190.3, similarly indicating higher leasing costs.
A small flat under 40 square meters (431 square feet) on Hong Kong Island costs an average of HK$182,000 ($23,198.01) per square meter, or $17,000 per square foot, it added.
Home ownership in space-starved Hong Kong has plunged below 50% as residential properties continue to grow more unaffordable, prompting residents to turn to more cost-efficient housing alternatives like micro flats or homes less than 20 square meters.
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.
Photo from Mk2010 - Own work, CC BY-SA 4.0
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