How Unaffordable is Hong Kong Housing?
When investment bankers start pontificating on Hong Kong’s housing and income inequality problems, you know it’s a serious problem.
A story and accompanying video by Polly Hui in the WSJ explores the problem of subdivided flats in Hong Kong as the government pledges it will address public anger over record house prices and reassess land policy.
J.P.Morgan has helpfully crunched the numbers in a note, “Unaffordable housing,” to show just how unaffordable housing has become for the general public and why the government’s cooling policies have been ineffective.
For starters, incomes are increasing nowhere near as fast as house prices; median household income in March 2011 was HK$19,100 (US$2451). More than 50% of families earn just HK$20,000 per month, and only 4.2% of households have an income over HK$100,000 a month.
Source : Wall Street Journal