20 Most Overpriced Housing Markets in the World

1. Hong Kong

Median Multiple: 18.8

Average Home Price: $1,250,000 

Hong Kong is the most overpriced housing market in the world with a median multiple of 18.8. Real house prices in Hong Kong increased fourfold between 2003 and 2018. Inflation-adjusted house prices in the city witnessed a decline of 7% between mid-2022 and mid-2023. An analysis of the local housing market reveals that the housing crisis is rather deep-rooted. The city saw a real estate hegemony in the early 2000s with a concentration of wealth among some property tycoon families. The government suspended subsidized housing and regular land auctions which made the property prices recover. However, the suspension of subsidized housing under the Home Ownership Scheme moved the market from private to public. Continuous surge in prices in the private market made the dream of home ownership in Hong Kong a lost case. Shortage of public housing remains an issue while the average waiting time for public housing allotment was as high as 6.1 years in March 2022. As of now, the city’s housing market is so unaffordable that a skilled service worker has to dedicate more than 20 times the average annual income to purchase a 60-square-meter flat. Additionally, the current median home price is $1.25 million.

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