One of the biggest challenges and areas of focus within global mobility programs is controlling costs. Housing costs can have the biggest impact on the overall cost of living for employees, and are usually the most or second most expensive line item within any expatriate mobility program. For a variety of reasons, Hong Kong remains the most expensive destination for mobile talent.
That makes it vital for companies to have the most updated information on rental housing in Hong Kong when sending employees there on assignment. Some of the factors that make Hong Kong such an expensive housing market include: low supply, high demand, developer impact, government involvement and how housing ties to taxes. Property owners are also not willing to sell their property as easily as in other markets, because they know values will continue to increase.
Understanding the dynamic of the Hong Kong housing market gives real insights into why costs have remained consistently high over the years. Ultimately, expect housing costs in Hong Kong to continue leading the world, making it one of the most expensive cities in which to live.
Hong Kong was recently ranked the most expensive housing market in the world for the seventh consecutive year, according to the annual Demographia International Housing Affordability Survey. The survey, which divides median house prices by gross annual median household income, found Hong Kong to clock in at 18.1. So, on average, if someone makes $50,000 in annual income, the cost of their home would be $900,000. The 18.1 multiple soars above other markets around the world. The second least affordable city is Sydney which scored a multiple of 12.1. Even financial hubs London and New York pale in comparison coming in at multiples of 8.5 and 5.9 respectively. So what makes Hong Kong so expensive?