A tale of two cities: how home prices affect Hong Kong and Shanghai’s competitiveness
A new study says Hong Kong’s lofty home prices ‘threaten’ its competitiveness. But too much intervention can be just as damaging
As Shanghai and Hong Kong battle for supremacy on the economic and financial fronts, property prices in the two cities could potentially become the game changer.
According to a study jointly conducted by the United Nations and the Chinese Academy of Social Sciences (CASS), lofty home prices in Hong Kong threaten its urban competitiveness.
The CASS is one of the key think tanks that provide advice to the national government.
Its conclusion echoes the Shanghai government’s worries that expensive dwellings in the city have emerged as a stumbling block to its chances of climbing into the list of global elite metropolises.
Among the 202 sample cities, Hong Kong was the most expensive place to own a home in 2015, with an average buyer having to spend US$21,502.2 for a square metre of a flat, according to the Global Urban Competitiveness Report.
However, disposable income per capita stood at US$29,460 that year, ranking 52nd in the world.