Hong Kong’s record property prices push more millennial into mortgage debt
May 30, 2018 - Tseung Kwan O
Shut out of many of their city’s most centrally located residential properties, Hong Kong millennials are wasting no time snapping up homes, the South China Morning Post reported.
A whopping 100 units were sold at the Wings At Sea II project at Lohas Park in Tseung Kwan O on Sunday, according to Sammy Po Siu-ming, chief executive for residential at the agency Midland Realty.
Half the buyers of the Sun Hung Kai Properties development turned out to be millennials, some of whom had to borrow from their parents to put a downpayment or pay off a part of the mortgages.
Millennials, the generation oft-referred to as being born between 1981 to 1996, made up 32.3 percent of total new mortgages taken in the first quarter of 2017, data from the credit bureau TransUnion showed. This figure is 19.1 percent higher than that in the first quarter of 2013.
In the three days to Sunday, around 250 units in four projects with prices hovering between HKD19,975 and HKD28,235 (USD2,545 to USD3,600) per square feet were sold.
Despite a string of cooling measures by the government, Hong Kong was judged the world’s least affordable housing market by US planning consultancy Demographia for the eighth successive year in January.
The median property price in Hong Kong is 19.4 times bigger than the median annual household income, Demographia figures showed.
Trends, property prices, property market, real estate market