19th January 2025 – (Hong Kong) A recent report from the New Youth Forum reveals that Hong Kong’s overall housing price index has soared by an astonishing 957.7% from 1988 to 2023. This dramatic increase highlights the formidable challenges faced by younger generations striving for homeownership in a city where property prices remain prohibitively high.
The report indicates that the housing price index has escalated from 31.9 to 337.4 points over the past 35 years, while the rental index also saw significant growth, climbing 230.5% from 54.8 to 181.1 points. In sharp contrast, inflation during the same period has risen a mere 204%, as evidenced by the index’s increase from 34.7 to 105.5 points. This disparity underscores the escalating difficulty for young professionals in securing affordable housing.
The New Youth Forum further investigated the income dynamics of university-educated individuals in relation to property prices in the New Territories. The findings revealed a slight easing in the homeownership burden, with the ratio of median income to property prices dropping to 60.4% in 2023, compared to 61.8% a decade earlier in 2013. This indicates a marginal improvement for graduates entering the housing market.
Historically, the fluctuations in the housing market have mirrored the economic climate. In 1993, the ratio of property prices to income was relatively manageable at 33.5%. However, during the 1998 Asian financial crisis, this figure fell to 30.1%, reflecting a temporary easing in the housing burden for graduates. The onset of SARS in 2003 saw this ratio dip further to 19.4%, suggesting that economic downturns can create short-lived opportunities for home seekers.
By 2013, however, the situation had shifted dramatically, with the proportion soaring to 61.8%. This trend continued, reaching a staggering 84.6% in 2018. Recent market adjustments, however, have led to a reduction in this ratio, providing a glimmer of hope for aspiring homeowners.
The report also examined the income shifts for young professionals aged 20 to 24 entering the workforce. In 2003, the median income for this demographic peaked at $16,233, the highest recorded. In contrast, by 2013, after adjusting for housing prices, this figure had plummeted to just $5,156, with a further decline to $4,028 in 2018. However, the latest data for 2023 shows a modest recovery, with median income rising to $5,927 as housing prices have begun to stabilise.
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