Since 2000, housing prices in Paris, Hong Kong and Vancouver have increased by 150% since 2000, according to Swiss Bank UBS’s 2019 Global Real Estate Bubble Index. The median price-to-income ratio now stands at 7, compared to 5 ten years ago. UBS’s report tracks the risk of property price bubbles in global cities. It also looks at the cost of living around the world, and where professionals need to work the longest to afford an apartment in their city. Hong Kong stands above them all. Strong investor demand, general positive sentiment and the fear of missing out on capital gains, the real price level in Hong Kong has more than doubled between 2008 and 2018. Workers earning twice the city’s average income struggle to afford a 650-square-foot apartment.
How long does it take the average skilled worker to buy a 650-square-foot apartment in some of the biggest cities in the world? Here is the UBS list:
21 years: Hong Kong
15 years: Paris
14 years: London
12 years: Singapore
11 Years: New York, Tokyo and Tel Aviv
Sven Franssen