Pursuits
Hong Kong Homes Becoming More Affordable Than China: BofA
- Housing affordability ratio at 58% versus 80%-124% in China
- Mainland investors may consider buying second home in city
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Chinese buyers are stepping up home purchases in Hong Kong, where prices are becoming “relatively more affordable” compared with some major mainland cities, according to Bank of America Merrill Lynch.
Interest from mainland buyers, amid a surge in home prices in many Chinese cities, may support Hong Kong’s property market, analysts Karl Choi and Fan Tso wrote in a note dated Thursday. Hong Kong’s housing affordability ratio, which measures mortgage payments as a proportion of median household income, now stands at 58 percent, compared with between 80 percent to 124 percent in three first-tier Chinese cities, they said.