RESIDENTIAL PROPERTY | Staff Reporter, Hong Kong

Nearly half of students expect parents to pitch in for home purchases

However, this may still be insufficient to cover skyrocketing home costs.

Nearly half (49%) of Hong Kong students expect financial assistance from their parents to fulfil their home aspirations in the world’s most expensive housing market, according to a survey by insurer Sun Life.

Also read: Millennials are jostling for space in Hong Kong's property ladder

Most parents are bound by duty to help their children get a space in the city’s property ladder with 41% admitting that they have stashed away money to help their children with property purchases.

About one in six parents aged 34 or below admitted that they have already set aside around $558,8444 for their children’s future. Those aged 45 or above have saved more at  $893,506.

However, the city's overheated property market raises the concern that such savings may not even be enough to cover housing costs. 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.

Sun Life Hong Kong surveyed 690 parents and 141 students in the city between April and May 2018.

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