New York entered the top 5 cities in the world with the most expensive housing

According to the UBS 2019 Global Real Estate Index, housing prices in Paris (France), Hong Kong and Vancouver (Canada) rose by 150% from 2000. Writes about it CNBC.

Фото: Depositphotos

The average price-earnings ratio is currently seven, compared to five ten years ago.

A UBS report tracks the risk of a price bubble for real estate in cities around the world. It examines the cost of living throughout the world, as well as where professionals “must work the longest” to afford to buy an apartment in their city.

And during this worldwide rise in property prices, Hong Kong ranks first: it is very difficult for an employee who earns twice the average income to buy an apartment of 650 square feet (60 square meters).

“Prices in recent years have significantly outpaced revenues,” the report says, and this can pose a threat to the cities themselves. “If working people cannot afford to buy an apartment, the attractiveness and growth prospects of the city in question are reduced.”

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The report notes that the average price growth has stopped for the first time since 2012.

How many years will it take for a worker with an average salary to purchase an apartment of 650 square feet (60 square meters) in major cities around the world.

11 years: New York (USA), Tokyo (Japan) and Tel Aviv (Israel)

“Buying an apartment (650 square feet) exceeds the budget of people who earn an average annual income in the highly skilled services sector in most cities in the world,” the report said.

Although prices in New York are still below their 2006 peak of the year, the city remains expensive for most people.

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Even a highly skilled worker needs to work more than 10 years (mainly for residents of any North American city) in order to afford to buy an apartment of 650 square. ft. not far from the city center.

12 years: Singapore

This is actually less than in the 2009 year, when 14 years were required to buy an apartment.

“The Singapore housing market is one of the few in which the availability of private housing has improved over the past 10 years,” the report said. “Current prices are similar to what they were in 2008, while revenues grew by 20%.”

However, the average skilled worker needs more than ten years to afford to buy a house.

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14 years: London (Britain)

“The boom in the London housing market has ended,” the report said. - Prices adjusted for inflation have been declining for some time. They have fallen by 10% since the peak in the middle of the 2016 year and by almost 4% in the last four quarters. "

However, for the first time, buyers are still spending more than half of their income on mortgage payments.

15 years: Paris (France)

Unlike London, this year Paris entered the real estate bubble zone and is the most inaccessible European city.

“Real housing prices in the French capital have reached a new historic high,” the report said.

21 year: Hong Kong

The least accessible city is not in North America and not in Europe. Superiority in this belongs to Hong Kong.

“Encouraged by the high demand of investors, a general positive mood and fear of missing out on capital gains, the real price level in Hong Kong more than doubled between 2008 and 2018,” the report said.

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A worker who earns 2 times more than the average salary in Hong Kong will still find it difficult to purchase an apartment of 650 square feet (60 square meters). But, according to the report, this situation will soon change: according to the forecast, housing prices should fall in the 2020 year.

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