Is Hong Kong doing enough to lose its top spot for expensive housing?

Hong Kong has come out on top again, but not in a good way. After earning the distinction of having the highest petrol prices in the world, we have again been named the world’s priciest residential property market in the “Mapping the World’s Prices” report released by Deutsche Bank. We managed to keep our top spot despite a 10 per cent drop in property prices from pre-pandemic levels. Naturally, this is not something Chief Executive John Lee Ka-chiu will be blowing his horn about. Generations of Hongkongers have been priced out of the city’s property market. Wages have not kept up. In the Deutsche Bank report, we are ranked 30th out of 69 cities in terms of monthly salary. According to the annual Demographia International Housing Affordability Survey, it would take a household 14.1 years of income, without other expenses, to buy a median-priced home in Hong Kong. The city is at the top of that survey, too, holding the title of the world’s most unaffordable housing market for 16 straight years. No wonder we have a low birth rate. Some young people might be delaying marriage and having a family of their own to focus on their careers. Women attaining higher levels of education is also known to contribute to the falling birth rate. But some households put off having children because space is too much of a premium. That’s what paying 14.1 years of your income for housing, without other expenses, translates into. That’s not a choice – it’s reality. How do we manage to keep these prices high and out of reach for ordinary people? That, too, is an old tale. Wealth disparity is the main driver. Nothing better illustrates our two-track reality than having luxury houses on The Peak and cage homes fitted in old tenements. Ultimately, the Hong Kong government controls supply. It will release only one residential site for sale in the July to September quarter, as officials say we are on track to meet our housing targets. But the government’s tight leash on land supply will put upward pressure on residential property prices. The Deutsche Bank report recognises that Hong Kong remains a global magnet for talent and capital. Such talent is attracted to invest in property, and these people are the ones propping up prices. The city’s private residential market is expected to continue to grow for the rest of 2026 and into 2027. We have two housing markets: the private market and the public and subsidised one. Public and subsidised housing takes care of those who can’t afford to own homes in the private market. Demand remains high, and while the average waiting time for public housing might have shortened on paper, it is still long. As the Deutsche Bank report notes, “The richest cities are not always the easiest places to live.” Hong Kong’s quality of life ranking has fallen to 55th this year, down seven places from 2025. “Extremely high costs” related to property, pollution and long commuting times are the main reasons for the drop. Housing costs – whether for rental or purchase – are weighing on expendable income and quality of life. Given all this, it is no wonder that the trend of Hongkongers making weekend trips out of the city to get better value by shopping on the mainland is becoming a permanent fixture. People want more bang for their buck. Has the government given up on reversing the trend of the holiday exodus? Despite all the good news and achievements recently highlighted by officials, including good performances in global competitiveness and talent rankings, the city’s cost of living remains high. The fruits of our successes are not being shared with the average Hongkonger, while the costs of transport, healthcare and public services continue to rise. If the government’s professed concerns about building strong communities and instilling a strong sense of belonging are true, it must do more to address housing affordability. Otherwise, Hong Kong will continue to be a city where people feel trapped and make do until a better place or opportunity comes along, treating the city as a temporary home. The government wants to inspire hope for the future. Elevated home prices will only erode confidence. City life might be competitive and stressful, but it must at least be liveable.

Is Hong Kong doing enough to lose its top spot for expensive housing?

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}For all the city’s recent successes, the benefits are not translating to more affordable lives for many Hongkongers

For all the city’s recent successes, the benefits are not translating to more affordable lives for many Hongkongers