Hong Kong’s property mania inflates prices of even the tiniest flats, putting affordability beyond reach for most first-time buyers
- The price of new flats smaller than 200 square feet rose to HK$25,512 per square foot in the first nine months, according to Midland Realty’s data
- That made the smallest flats more costly than the typical Hong Kong abode, cheaper only than luxury homes bigger than 1,000 sq ft
The bar chart of home prices of various sizes looks like a U shape with extended bars on both ends, because “Hongkongers with limited budgets can only [opt] for smaller lump sum payments,” which explains why the smallest flats sell out first, said Midland’s chief analyst Buggle Lau. “No one wants to live in tiny flats” if they had a better choice, he said.
The dismal state of housing underscores the challenges confronting Hong Kong’s policymakers as they grapple with ways to make housing more affordable, especially for young families, school leavers and other people struggling to get on the first rungs of the property ladder.
The average price of micro-apartments jumped 23 per cent last year from 2019, before retreating by 1.7 per cent in the first nine months of 2021, Midland’s data showed. That gave the typical 200 sq ft Hong Kong nano flat a price tag of HK$5.1 million (US$655,000), about the same as a 544 sq ft studio in southeast London, according to the property website of Galliard Homes.
