Hong Kong Properties Are Seriously Unaffordable For Millennials
Hong Kong people would agree that the dream of owning a home is challenging for most millennials. On top of the land shortage, the increasing cost of living has taken away millennials’ dream to save up for their dream home. Even though this news wouldn’t surprise many people, how bad has the situation become? According to the annual Demographia Housing Affordability Survey, Hong Kong is the most expensive city to live in – 10th consecutive years! The status is unlikely to be toppled soon. A Hong Kong family would need to save up for almost 21 years, which is around twice the time needed for the runner ups, to afford a home in the city. What’s worse? Our Hong Kong Foundation, a think tank established by former chief executive Tung Chee-Hwa, predicts the average flat size will contract further to less than 430 sq. ft in the next few years, accounting for 45 percent of private housing supply in 2019. Imagine a 400 sq. ft space is roughly the size of a typical two-car garage – there is barely any wiggle room left with a kitchen, bathroom, and a single-bed mattress!
These conditions not only have caused bad living standards for millennials but their financial status is also in a tough situation. According to Numbeo (a research and data site), a single Hong Kong person’s monthly cost is no less than HKD 8,000. With an average monthly rent of more than HKD 10,000 for a 400 sq. ft flat, millennials might only have a few thousand left for savings. With all the increasing expenditures for daily necessities and expensive living costs, millennials barely save any to invest in Hong Kong real estate. It is time to rethink, “Is there a better place to invest in real estate?”, and “Is Hong Kong suitable for real estate investments?”
With social unrest and the COVID-19 pandemic, Hong Kong millennials grow interests in Southeast Asian real estate markets, such as the Malaysia real estate market and the Vietnam real estate market. They feel Southeast Asian countries have a better economic environment, while barriers to participating in real estate investing are lower than most emerging markets. According to Global Property Guide, the average price per sq. ft in Hong Kong is HKD 20,570, while average prices per sq. ft in Malaysia and Vietnam are HKD 2,480 and HKD 1,643. Purchasing a Hong Kong property costs almost ten times more expensive than that in other Southeast Asian countries! No wonder that Hong Kong millennials have decided to look elsewhere.
Hong Kong millennials must realize that there are plenty of real estate investment opportunities outside of Hong Kong waiting for them to discover. With the rise of PropTech, investors can now be more accessible to global real estate investment opportunities and have a better-informed decision to put their hard-earned savings to work. With our platform (https://denzity.io/), we let investors focus on what matters most: getting a better sense of where, what, and how to invest in real estate worldwide that they have never thought of before effortlessly.
香港人會同意夢想擁有房產對於香港80後非常困難的。除了土地短缺，生活成本的上漲更是奪走了80後為自己夢想家園儲蓄的夢想。雖然這些都不會讓很多人驚訝，可是情況會變得有多差？根據每年Demographia Housing Affordability Survey，香港連續十年成為生活最昂貴的城市！而且，這情況近期不會被推翻。一個香港家庭需要儲蓄21年才能在自己城市負擔起自己的房子，是其他國度城市人需要的兩倍時間。團結香港資金，一個前特首智董建華創立的囊團，預計未來幾年平均單位面積將縮小至430平方英尺以下，佔2019私人住房供應的45%。想像一個400平方英尺的空間相等於兩個標準車庫 — 裝進廚房、浴室和單人床床墊後也幾乎沒有擺動空間！
這些條件不但導致80後生活水平惡劣，而且在財務狀況也面臨嚴峻問題。根據Numbeo，一位香港人每月費用不少於 HKD 8000。對於一個400平方英尺的房子，平均每月租金超過 HKD10000，80後可能只剩下幾千塊錢儲蓄。隨著日用指出昂貴和生活費用增加，80後不可能積蓄任何錢投資香港房產。是時候重新考慮：「有更好的地方投資房產嗎？香港真的適合房產物業投資嗎？」
因為社會動盪與新冠病毒大流行，香港80後對於東南亞房產市場感興趣，如馬來西亞與越南的房產市場。他們覺得東南亞國家的經濟環境比較好，而且投資房地產的門檻比起其他新興市場還要低。根據Global Property Guide，香港物業每平方英尺平均價格HKD 20,570，而馬來西亞與越南物業則每平方英尺平均價格分別為HKD 2,480和HKD 1,643。在香港購買物業的價格是東南亞國家的十倍！難怪香港80後決定把目光鎖定其他地區。