Three Chinese cities were recently listed among the top ten in the world for least afforable housing, according to a recent Oxford Economics study.
Hong Kong landed at number one on the list, followed by Mumbai at number two, Beijing at number three and Shanghai at number four. With the exception of London, which ranked fifth overall, four of the top five cities with the most expensive property rates were located in Asia. Other Asian cities that cracked the top ten included Tokyo (sixth overall), Singapore (seventh overall) and Seoul (tenth overall).
According to the study, it takes more than 30 years for a middle class family with average income to buy a 90 square meter apartment in Hong Kong, Mumbai, Beijing or Shanghai.
The report revealed that rising prosperity and other demographics will lead to stronger housing demand in large Asian cities with less developed economies over the next several years. On the other hand, the population of Tokyo and Seoul is expected to decrease over next decade, which could cut down demand for property.
A recent study from the Organization for Economic Co-operation and Development (OECD) compiled a list of the top ten countries where property is the cheapest. The research was conducted by looking at the house prices relative to wages and then compared this ratio with historical averages. Despite expensive housing in their capital cities, Japan and South Korea still managed to make the list.