According to the 5th Annual Global Living Report, Hong Kong has the most expensive real estate market around the world.
Hong Kong: The Most Expensive City To Buy A House
The statistics were according to the report done by CBRE, which has compared 35 property markets of key cities around the world. Their results show that the key drivers of economic growth are connectivity, retail, transport infrastructure, cultural centres - and of course, housing.
CBRE UK’s Head of Residential Research, Jennet Siebrits, said, “In the fifth edition of the Global Living report, we have expanded the number of cities we examine from 29 to 35. They include the most exciting cities in the world, from emerging technology-driven powerhouses like Shenzhen and Bangkok through more traditional capital cities such as Rome and Lisbon, to rapidly evolving modern urban centres like Dubai and Johannesburg. The world’s greatest cities continue to transform to encourage innovation, increase their working and living populations and create new commercial opportunities for businesses.”
Surprising to most people, the top 3 spots were nabbed by Asian cities. However, these cities have been the forerunners, and have been holding the same spots, as of last year. The cities of Hong Kong, Singapore, and Shanghai, however, have helped in keeping the prices under control, by introducing cooling measures.
Hong Kong has maintained its position as the most expensive residential property market in the world. Singapore ranks second; however, when compared to Hong Kong, the prices are more affordable. The prices in Singapore are just above 50% of the prices in Hong Kong. When it comes to price growth, when compared to Shanghai, Hong Kong is relatively at a median pace. Shanghai has an 11.2% price growth, while Hong Kong only has 5.5%. The average cost per sq.ft. in Hong Kong is $2,091, while Singapore averages at $1,063 per sq.ft. In Shanghai, the average price per sq.ft. is $714 sq.ft.
What Caused The Price Increase Of Housing In Hong Kong?
Even with the big political crisis that Hong Kong is currently experiencing, the housing market of the city is not looking good.
According to Tsang, JLL’s chairman, “Housing is always one of our major issues. It creates a lot of anxiety in society. Young people are finding it frustrating for buying their own house and to be successful.” JLL is a commercial real estate services firm in Hong Kong.
The city of Hong Kong used to be a colony of Great Britain. However, it was returned to Chinese rule, which resulted in unrest amongst its citizens. The protests started back in June, because of a now-nixed extradition bill. It has now become a broader anti-government movement. The protests often result in violent clashes between the police and protesters. Plenty of businessmen and economists have pointed out that one of the reasons the people are protesting is owning a house.
In order to alleviate the problem, Carrie Lam, the leader of Hong Kong, has introduced a number of housing policies. She said, “Every Hong Kong citizen and his family will no longer have to be troubled by or preoccupied with the housing problem… They will be able to have their own home in Hong Kong — a city in which we all have a share.”
The people have often blamed the Mainland Chinese for hoarding properties in Hong Kong. They feel that the Mainland Chinese drove up the prices in the city. However, most properties are actually owned by people from Hong Kong. When you take a closer look, the principal reason with the current state of Hong Kong’s real estate market is the lack of supply.
Top 10 Most Expensive Housing Markets
Here are the cities that are ranked as the 10 cities with the most expensive markets:
1. Hong Kong
The average property price in Hong Kong is $ 1,235,220, while the average price per sq.ft. is $ 2,091. Hong Kong is southern China’s special administrative region on Pearl River estuary’s eastern region. The city has a population of more than 7.4 million, and is considered to be one of the most densely populated cities in the world.
The average property price in Singapore is $874,372, while the average price per sq.ft. is $1,063. Singapore is an island city-state that can be found in Southeast Asia. It’s located at Malay Peninsula’s southern tip, and at 1 degree north of the equator. Singapore’s territory has 62 islets, and one main island. All throughout the years, they have performed extensive land reclamation that has increased its size by 23%.
The average property price in Shanghai is $872,555, while the average price per sq.ft. is $714. Shanghai is one of China’s four municipalities, and has a population of more than 24 million. It can be found on the Yangtze River's southern area, and the Huangpu River flows through the city. Shanghai is the 2nd-most populated city proper in the whole world, and is China’s most populated urban area. It’s a global centre for transportation, innovation, and finance.
The average property price in Vancouver is $815,322. Vancouver is a coastal seaport city, and can be found in British Columbia’s Lower Mainland. It’s Canada’s 3rd-largest metropolitan area, and has a population of more than 2.4 million. Vancouver is the 5th most densely populated all over North America, having more than 5,400 people per sq.km. It’s also one of the most diverse cities in Canada, when it comes to ethnicity and language.
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The average property price in Shenzhen is $680,283, while the average price per sq.ft. is $726. Shenzhen is one of the major sub-provincial cities of China. It borders Hong Kong, and can be found on the Pearl River’s eastern bank. The city has a vibrant economy because of the foreign investments it has been receiving. It’s one of the leading global technology hubs, and has been called the next Silicon Valley by the media.
6. Los Angeles
The average property price in Los Angeles is $679,220, while the average price per sq.ft. is $466. Los Angeles is California’s most populated city, and is popularly known as the City of Angels. It’s the United States’s 2nd-most populous city, and North America’s 3rd-most populous overall. It has a population of almost 3 million people, and is Southern California’s centre when it comes to finances, commerce, and culture. Los Angeles is popular for its sprawling metropolis, entertainment industry, ethnic diversity, Mediterranean, and of course, Hollywood.
7. New York City
The average property price in Los Angeles is $674,500, while the average price per sq.ft. is $526. New York City, usually called NYC or The Big Apple, is the United States of America’s most populated city. It has a population of more than 8.3 million, and can be found at the southern tip of the state of New York. It’s the center of the state’s metropolitan area, and the world’s largest metropolitan by urban landmass. New York is also one of the populous cities in the world. It has often been called the media, financial and cultural capital of the world. The city also has a great impact on politics, art, fashion, tourism, sports, research, technology, education, and commerce. New York is home to the United Nations’ headquarters, and its fast pace has helped coined the term “New York Minute”.
The average property price in London is $646,973, while the average price per sq.ft. is $776. London is the United Kingdom’s largest city, and capital. It can be found in England’s southeast, and for two millennia, it has been a major settlement. Romans originally founded London, and today, it is one of the most essential cities in the entire world. Plenty of times, the city has been called the most investment-friendly, innovative, most expensive, most visited, most desirable, most influential, and most sustainable city in the world.
The average property price in Beijing is $629,276, while the average price per sq.ft. is $575. Beijing is China’s capital city, and the 3rd-most populous capital city. It can be found in the north of China, and is managed as a municipality under the central government’s direct administration. The city is an essential global power city and world capital. It’s one of the leading cities for business and economy, education, science and technology, culture, diplomacy and politics, and language. Since 2010, Beijing has held the title of being the world’s 2nd-busiest, when it comes to passenger traffic.
The average property price in Paris is $625,299, while the average price per sq.ft. is $985. It’s the capital of France, and is the most populous city in the country. Paris has been one of the major centres of arts, science, fashion, diplomacy, commerce, and finance in all of Europe. As of 2019, it has a population of more than 12 million, which is equivalent to 18% of France’s population.
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