In today's era of soaring prices, housing costs have skyrocketed even further. Many people complain about high housing prices in China; however, looking at cities in developed countries globally, the most expensive city for housing in the world is Monaco, where the average housing price is 382,352 RMB per square meter, truly astronomical. In the global ranking of the most expensive cities for housing, three Chinese cities have proudly made the list: Hong Kong, Beijing, and Shanghai.
1. Monaco
Housing prices in Monaco are truly beyond reach, having topped the list for nine consecutive years. As of December 2015, 6 million RMB could only purchase a 17-square-meter property in the city, equivalent to 382,352 RMB per square meter—an absurdly high price. However, their average annual income is 183,150 USD, and the average annual income for a family of three is nearly 550,000 USD, making the price-to-income ratio less than 11 times. By this calculation, it is actually not as expensive as housing in Beijing.
2. Hong Kong, China
Hong Kong is also a place where every inch of land is worth its weight in gold. Many people spend their entire lives huddled with their families in a space of less than 30 to 40 square meters; just thinking about it feels cramped. While 6 million RMB could buy a luxury mansion elsewhere, here it only buys 20 square meters, equivalent to 325,485 RMB per square meter. In China, a 90-square-meter apartment is typically considered an entry-level home, and 110 square meters is the standard. In Hong Kong, however, a 90-square-meter commercial property is considered a luxury home!
3. London, UK
Housing prices in London have remained consistently high. In 2014, the average annual income for a Londoner was 278,126 RMB, while the average housing price was 295,886 RMB per square meter. This means that for a middle-class person to buy an 80-square-meter apartment in London, they would need to work for 85 consecutive years without eating, drinking, getting sick, or taking a vacation. Behind the surge in London's housing prices are a series of preferential home-buying measures taken by the local government to stimulate the economy.
4. New York, USA
The fashion and romance of New York are alluring, but the housing prices here are daunting. The average housing price in New York is 241,092 RMB per square meter, which is twice that of Beijing. The price of luxury homes in Beijing is still far from comparable to those in New York, with both unit prices and total prices being less than one-third of the latter. The reason for this is easy to understand; after all, only wealthy Chinese buy homes in Beijing, while the wealthy from all over the world buy homes in New York.
5. Geneva, Switzerland
Housing prices in Geneva, Switzerland's second-largest city, rank first in the country. In 2015, the average housing price in Geneva was 162,500 RMB per square meter. Although Switzerland is one of the most livable countries in the world, it is said that a Swiss middle-class person would need 26 years to buy an 80-square-meter apartment in downtown Geneva. However, since Switzerland is one of the wealthiest countries in the world, the housing prices are relatively acceptable.
6. Sydney, Australia
In 2015, 6 million RMB could only buy a 40-square-meter property in Sydney, equivalent to 162,500 RMB per square meter. The difference is that while wages in Geneva are high, income in Sydney is relatively low. Sydney is considered the most vibrant city in Australia and is a popular destination for Chinese immigrants. With a developed local economy and leading educational resources, housing prices are naturally not cheap.
7. Singapore
Singapore is a case of high housing prices and low income. In 2015, the city's average annual income was 180,000 RMB, but housing prices were 154,988 RMB per square meter. A middle-class person would need to work for 68 years without eating or drinking to buy an 80-square-meter apartment in the city center. Unlike in China, the area of properties in Singapore is calculated based on actual usable area, meaning there is no shared common area.
8. Shanghai, China
Housing prices in Shanghai are shockingly high, with the most expensive areas reaching 141,540 RMB per square meter. With such high prices, very few people can afford them. A middle-class person would need to work for 106 years without eating or drinking to buy an 80-square-meter apartment in Pudong. There is a reason for Shanghai's high housing prices; after all, it is the national economic center, and the target buyers are the wealthy from across the country, not just the locals.
9. Paris, France
As one of the wealthiest countries in the world, housing prices in Paris are also very expensive, reaching as high as 114,201 RMB per square meter. However, based on the income-to-price ratio, this price is actually quite affordable. Furthermore, the population inflow into Paris is not as intense as in Beijing; otherwise, housing prices would have skyrocketed like a rocket.
10. Beijing, China
The high housing prices in China's capital, Beijing, are evident to everyone in the country. In 2015, luxury homes in Beijing's central urban area ranked tenth in the world at 112,233 RMB per square meter. With an average annual income of only 104,504 RMB, a middle-class person would need to work for 86 years to buy an 80-square-meter apartment in the city center. As the national political center, Beijing offers the best resources in science, technology, culture, and education, naturally attracting wealthy people from all over the country to buy homes and settle down.
