The most difficult cities to buy houses in the world

France
Housing prices in Hong Kong doubled between 2008 and 2018, and workers with twice the average income in the city took 21 years to buy houses ...

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According to the UBS Global Real Estate Bubble Index 2019, home prices in Paris, Hong Kong, and Vancouver have increased by 150% since 2000. The average house price-to-income ratio is 7 now, compared to 5 of a decade ago.

According to CNBC, the UBS report tracks real estate price bubbles in cities across the globe. The report also looks at the cost of living in cities and where workers "have to work the longest" to have enough money to buy an apartment in the city they live in.

The world leader in expensive real estate is Hong Kong. In this city, a worker with an income twice the city average must also "struggle to buy" an apartment of about 60 m2.

"In the last few years, house prices have far exceeded people's income levels," the report said, and this could pose a threat to the cities themselves. "If workers, with good access to the job market, cannot afford an apartment, the attractiveness and growth potential of the city may decline."

Here is the average time it takes for an average skilled worker to buy an apartment of about 60 m2 in some major cities around the world, according to UBS.
The most difficult cities to buy houses in the world
Source:  UBS Global Real Estate Bubble Index 2019.

New York, Tokyo and Tel Aviv: 11 years

New York
New York is one of the most expensive cities in the world - Photo: Getty Images.
"The price of a 60 square meter apartment is over the pocket of the average-income earner in the highly skilled service sector in most major cities around the world," the report said.

Although New York home prices are still lower than their peak in 2006, the city remains one of the most expensive cities in the world.

"Even skilled workers need more than 10 years to buy an apartment of about 60 m2 near the city center," the report points out.

Singapore: 12 years

Singapore
House prices in Singapore are now equivalent to 2008 - Photo: SCMP.
In fact, the price of houses in Singapore has decreased compared to 2009 - then, the average skilled labor time to buy an apartment is 14 years.

"The housing market in Singapore is one of the few markets with an ability to buy private housing improved in the last 10 years," the report said. "Housing prices in Singapore are comparable to 2008, while household income has increased by 20%."

However, an average skilled worker here still takes 12 years to buy an apartment of about 60 m2.

London: 14 years

London
House prices in the UK are declining, over the boom in prices - Photo: Reuters.
The UBS report points out that, while London home prices are still out of reach for many, the city's risk of a real estate bubble is declining.

"The boom of the housing market in London is over," the report said. "The city's inflation-adjusted housing prices are on a downward trend. Compared to the peak in mid-2016, inflation-adjusted housing prices in this city have dropped by 10%, of which nearly 4% in the last 4 quarters only, and no sign of price increase ".

Even so, first-time home buyers still need more than 14 years to buy an apartment of about 60 m2.

Paris: 15 years

France
According to UBS, France is entering the real estate bubble - Photo: Wikipedia.
Unlike London, Paris is entering the real estate bubble and is the most expensive city in Europe.

"House prices in the French capital have reached a historic high after rising 5% in the past four quarters," the UBS report said.

Hong Kong: 21 years

Hong Kong
Hong Kong is the most expensive real estate market in the world - Photo: SCMP
The city with the most expensive housing prices is not in North America or Europe but in Asia - Hong Kong.

"Driven by strong investment demand, optimism in general and the fear of missing out on investment returns, house prices in Hong Kong have nearly doubled between 2008 and 2018," the report said. .

Laborers with incomes twice the city average must also struggle to buy an apartment of about 60 m2. It takes the average skilled person up to 21 years to do so. However, according to the report, house prices in Hong Kong are forecast to fall next year.

The most difficult cities to buy houses in the world The most difficult cities to buy houses in the world Reviewed by Duy Khiêm on October 06, 2019 Rating: 5

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