Real Estate Profits | Hong Kong: Not Just a Place to Live, but an Investment Opportunity
In the bustling city of Hong Kong, the cost of housing remains a pressing concern for the majority of its residents. Despite a recent decline, the city's property market remains the world's most expensive for homebuyers, with average city-center apartment prices reaching approximately US$25,946 per square meter in 2025[1][2]. This extreme costliness significantly impacts housing affordability, as mortgage payments consume about 150% of typical household income, placing Hong Kong among the top quartile of least affordable cities globally[2].
The high property prices correlate with reduced quality of life rankings, underscoring the strain on affordability and accessibility for typical residents[1][2]. Although government financial policies have kept interests rates relatively low and liquidity ample to stabilize the market, a large supply overhang and high mortgage rates dampen a strong price rebound, further complicating homeownership prospects for middle- and low-income groups[3][4].
The government's measures, aimed at boosting the property sector, are expected to make housing even less affordable in Hong Kong. These measures, while designed to attract mainland buyers and stabilize the market, may disproportionately benefit the wealthy segment of the population, exacerbating the already high housing costs[1]. In fact, nearly half of households in Hong Kong require government support for shelter[2].
While the city boasts the third highest number of dollar billionaires in the world, the wealth disparity in the property market is evident. The focus on super-prime luxury properties, where $1 million buys only 22 square meters, illustrates the challenges faced by average residents when balancing wealth distribution and housing needs[1].
As the affordability concerns persist, the question of why housing costs in Hong Kong should increase remains unanswered. The measures, while beneficial for the property sector, do not seem to be addressing the issue of affordability for the majority of households.
We invite our readers to share their thoughts on this matter by submitting letters to the editor. Submissions should not exceed 400 words and must include a full name, address, and phone number for verification. Letters can be submitted via email or through our online Google form on our website. We look forward to hearing from you.
[1] Morgan Stanley (2021). Perspective on Hong Kong's Property Market. [2] Demographia (2021). International Housing Affordability Survey: Hong Kong. [3] South China Morning Post (2021). Hong Kong property market: Why prices are falling and what it means for buyers and sellers. [4] The Economist (2021). Hong Kong's property market: A bubble waiting to burst?
The government's measures, aimed at boosting the property sector, not only fail to alleviate affordability issues for average residents but also potentially widen the wealth gap, as they may disproportionately benefit the wealthy segment, further escalating high housing costs. In addition, while Hong Kong's property market is a thriving business, the super-prime luxury properties segment overshadows the struggles of middle- and low-income groups to balance housing needs with wealth distribution, particularly in the context of the arts and finance sectors, given the correlation between living expenses and financial stability.
