Who can guess which city beats Sydney as the most unaffordable in the world? The International Demographia Survey just released its 12th annual report. It charts the cities with the highest wage to home price ratio. Interestingly, Australia hits the top ten list three times confirming its place as the world’s highest real estate prices in relation to income – therefore the most unaffordable.
You will never guess which was the third Oz location in the top ten (after Melbourne). Its close to home and very unpredictable due to an anomaly.
Sydney was ranked second, with households needing to spend 12.2 times their income to buy a home. This was up 2.4 points from the previous year and the largest jump ever recorded in the survey. Melbourne was equal fourth with Auckland and San Jose in California. Vancouver, another favoured destination for mainland Chinese to park money, came in third.
Hong Kong is Most Unaffordable City
And the winner is …. Hong Kong! It takes Hong Kong residents 19.2 times their annual income to buy an average house. It takes Sydneysiders a total of 12.4 times an annual wage. Surprisingly, Tweed Heads came in 10th in the global survey investigating over 367 markets. It looks like this was an anomaly due to the high number of apartment dwellings and retirees coupled a low annual wage.
The full list is:
|6||United States||San Jose||9.7|
|7||United Kingdom||Bournemouth, Dorsett||9.6|
|8||United States||Santa Cruz||9.6|
|9||United States||San Francisco||9.4|