That’s right, beloved readers! Here you can check the five most expensive real estate markets in the entire Globe — only one of which isn’t in Asia. For instance, to buy a 970-square-foot apartment in Hong Kong, Mumbai, Beijing or Shanghai would take more than 30 years for a family with a median income, according to a recent report by Oxford Economics which looked at price-to-income ratios around the globe.
London’s estate prices are harshly unaffordable to most residents after decades of growth. Since 2013, London’s real estate prices have increased and average home prices in the city have gone from £257,000 in 2006 to £474,000 in 2016, an 84% increase.
Government efforts to cool the housing market through high stamp duty rates for luxury real estates and new stamp duty rates for investment properties have failed to fail to make much impact.
Shanghai’s real estate is one of China’s hottest property markets, with prices increased as much as 40% last year and were up 5% a single month last August. Housing prices have been difficult to clamp down on. Several investors poured into the property sector, seeing it as one of the few options left for favorable returns.
In October, more than 20 Chinese cities, including Shanghai, introduced new measures to cool the luxury real estate market by implementing purchase limits and tightening mortgage restrictions.
With the average home price now $5,820 per square meter, Beijing is the most expensive housing market in mainland China, according to the Municipal Commission of Housing and Urban-Rural Development. In September, average real estate prices in Beijing increased nearly 30% year on year. By comparison, prices in China’s major cities increased about 11%.
Several investors have come to expect double-digit returns and much of domestic household wealth is tied up in luxury real estate.
Mumbai’s house price-to-monthly income ratio is the highest among major Indian cities. Located on a narrow peninsula, Mumbai is now home to some of the world’s most expensive real estate. While the country accumulates wealth, developers have been struggling to find building sites in the crowded city where millions still live in densely packed slums.
Much of India’s real estate transactions are done in cash to avoid taxes. PropEquity, a data provider, expects luxury real estate prices in Mumbai could drop by 30% this year.
Hong Kong follows holding on to its rank as the most expensive real estate market in the world for the 7th year in a row. The median home price was 18.1 times the median annual pretax household income last year, according to a recent annual report from Demographia.
The city’s housing prices have skyrocketed in recent years. Lack of affordable housing has become a top social issue as the city’s poor crowd into “cage homes” and subdivided apartments.