Would you buy your children a flat in Hong Kong? Seven out of 10 parents in the city say they would

Seven out of every 10 Hong Kong parents are willing to give their children financial assistance to buy a home, according to a survey released on Thursday.

Parents who have already done so have forked out an average of HK$900,000 to help their offspring onto the property ladder, while one generous parent contributed HK$10 million, the survey by AIA MPF found.

The findings underline how the “Bank of Mum and Dad” has become a major source of funds for young first-time buyers in the world’s most expensive housing market.

The survey, commissioned by AIA MPF in August, targeted just over 1,000 respondents aged between 18 and 65 who have an MPF account. The MPF (Mandatory Provident Fund) is Hong Kong’s compulsory retirement pension scheme.

The city’s skyrocketing home prices have left many young Hongkongers unable to afford their own home without help from their parents.

Hong Kong’s secondary home prices rose for a 17th straight month in August. Data from the Hong Kong Monetary Authority showed the average income-gearing ratio, or debt-to-income ratio, reached 75 per cent in the second quarter of this year, much higher than the long-term average of about 50 per cent since 1996.