Hong Kong homes becoming unattainable for the masses
By Leslie Tang | Posted: 31 March 2011 1421 hrs
HONG KONG: There is growing concern in Hong Kong that homes are becoming unattainable for regular citizens.
Some young professionals are having a tough time buying their first home, and are forced to move to outlying areas.
Market watchers attributed the red hot market to low interest rates, tight supply and hot money from mainland buyers.
Raymond So, Professor of Finance, Hang Seng Management College, said: "The prices are not affordable to a normal person. The property prices are too high. When you look at the statistics, it's still affordable but to many people it is out of reach to the masses."
It is a dilemma that newly-wed couples in their 30's can relate to.
Tsang Chi-ho, who is a host for public broadcaster Radio Television Hong Kong and his wife Sandy, who is a teacher, got married last year and have spent about six months house-hunting for their first home.
Although Sandy loves Hong Kong Island, the steep prices meant living there wasn't even an option.
And across the harbour in Kowloon district, they felt the property prices were were too small and overpriced.
"They introduced us to a tiny square-feet flat, about 300 or 500 square feet but the price is five million HK dollars. What I can get for the view is only another building. I can see my neighbour through the window and say hi to him," said Tsang.
The couple ended up venturing further out to Sham Tseng in the New Territories and bought a 770 square-foot apartment for 2.36 million HK dollars (US$300,000).
Though located far away from the city centre, they said the space and sea view is worth it but still needed some help with the payment.
"In my case, I need to ask my parents to help me to pay the first payment. I think it is a little bit shame on me because I'm 30 years old but I still need my parents to help me to buy the flat," said Tsang.
Economists said the situation is likely to impact community demographics.
"Because they cannot get an apartment of their own, they have to live with their parents and the time they get married will be delayed. When they talk about getting children, getting kids, they will be more careful whether they want to make that decision or not," said Professor So.
A recent survey showed Hong Kong is the most expensive major city in the world to buy a home, beating out London and New York.
Economists say if prices do not cool significantly, it is likely more young professionals will be moving to outlying areas to buy a home.
- CNA/fa
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