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High prices have always been a label for Hong Kong. In order to improve people’s livelihood, on October 16, 2019, Hong Kong Chief Executive Lin Zhengyue proposed a new policy to relax the mortgage of residential properties in his policy address.
According to the New Deal, the first home buyers in Hong Kong, with a total house price of no more than 8 million Hong Kong dollars, can purchase a house with a 10% ultra-low down payment, which reduces the pressure on young people to buy a house. It can be seen that Hong Kong has indeed shown sincerity in order to help young people buy a house.
Hong Kong 90% mortgage new plan launched
Many people blame the root cause of Hong Kong’s problem is the difficulty of buying a house caused by high housing prices. Although the correctness of this view is open to question, we can still analyze and compare in all aspects: How difficult is it for Hong Kong people to buy a house? And is it difficult to have a first-tier city in the Mainland?
The answer is different from what most people think.
First, the income of Hong Kong people far exceeds the residents of first-tier cities in the Mainland
Speaking of buying a house, nature can’t get around, Hong Kong is at 20The median monthly salary in 18 years was 17500 Hong Kong dollars, compared with HK$11,800 in 2010, which increased by nearly 50% in eight years. It far outperformed local GDP growth and inflation, and emphasized the income of compatriots. High, no growth or no future, it is obviously turning black and white.
Median monthly salary data of all employees in the local area 2010~2018
We will look at the representatives of first-tier cities: Shenzhen, which is separated from Hong Kong by a river, what is the income level?
The Shenzhen Human Resources and Social Security Bureau issued the “Guidelines for the Salary Price of the Human Resources Market in Shenzhen in 2018”. On page 6 of the document, the income of local residents in 2018 is stated. The median wage in Shenzhen in 2018 was 5069 yuan/month.
The sixth page of “2018 Shenzhen Human Resources Market Salary Guide Price” states the local wage levels
Integrated with the above official authority data, the median monthly salary of Hong Kong and Shenzhen in 2018 is 17500 Hong Kong dollars, 5069 yuan, that is, the income level of ordinary people in Hong Kong is more than three times that of Shenzhen.
Because Hong Kong and Shenzhen are both cities with large gaps between the rich and the poor, the median is more representative and persuasive than the average. Even if the average is seen, Hong Kong’s per capita income is stillIt is more than three times that of Shenzhen.
Hong Kong people not only have high income, but also have an extremely low personal income tax. Take a middle- and high-income family with an annual salary of 1 million Hong Kong dollars as an example. Suppose the husband and wife earns 500,000 Hong Kong dollars per year. There is one child in the family. The husband and wife support the parents on both sides of the 60-year-old and do not live together. According to Hong Kong 2019-2020 In the fiscal year’s income tax return and reduction plan, the personal income tax paid by the husband and wife for the current year is: 34,880 Hong Kong dollars. The ultra-low tax rate has made Hong Kong people’s purchasing power stronger, and they have added more strength in the face of high housing prices.
The tax form for millions of couples in the above circumstances
Second, Hong Kong prices are not so exaggerated
Because Hong Kong’s housing is relatively small and relatively compact, the total price of their commercial housing is not as high as most people think. In 2018, the median price of the property is 5.4 million Hong Kong dollars. 4.85 million yuan, Shenzhen is 3.52 million yuan, after the exchange rate conversion, the median price of Hong Kong real estate is only 38% higher than Shenzhen, and Hong Kong’s median income is more than three times that of Shenzhen.
Median median price of local property – HK$5.4 million
Shenzhen 2018 housing median total price of 3.52 million, ranked second in the country
Don’t think that more than 5 million Hong Kong dollars can’t be bought in Hong Kong. In the following picture, the two-bedroom apartment in Yuen Long is an example. Although the area is small, the quality of the house is not bad (the old and the small in the first-tier cities in the Mainland) It is much stronger. There are garden-style communities, shopping malls, schools, and pharmacies. The subway station is downstairs, public transportation is 30 minutes to Tsuen Wan, and 43 minutes to Tsim Sha Tsui. After the housing prices in the Mainland have rapidly doubled in the past few years, Hong Kong’s housing prices are not so high.
A set of 5.98 million Hong Kong dollars (53.7 million yuan) house
Three, ultra-low down payment and mortgage rates
As mentioned at the beginning of this article, under the new mortgage rules in Hong Kong, the first self-occupied homebuyers can use a 10% down payment to purchase a property of less than HK$8 million. In Shenzhen, the minimum mortgage rate for the first home loan is 30%, this ratio is also 30% in Shanghai and Guangzhou, and 35% in Beijing.
The highest mortgage rate and corresponding monthly payment for the total price of Hong Kong’s 10 million files
Hong Kong’s ultra-low mortgage interest rate has also reduced the burden on Hong Kong people to buy a house. P is only 2.25% based on the actual interest rate. Correspondingly, Shenzhen is currently in accordance with the latest LPR mortgage rules. The interest rate of the first home loan is not less than 5.15. %.
The loan interest rate has a decisive impact on the lender’s burden. Assuming that the same person has made a 4 million mortgage for 30 years, the simple calculation, the 2.25% and 5.15% interest rates respectively correspond to a monthly supply of 15,300 and 21,800 respectively. The monthly burden is 6500, and the cash flow of 6500 yuan per month is not a small number.
Hong Kong Mortgage New Rules
Four, the truth of the “coffin room”
Does anyone in Hong Kong live in a “coffin room”? Of course there are, but only a few. It is not possible to understand the minority as a majority of people in a partial manner.
At present, Hong Kong’s housing ownership rate is 50%, and the number of people living in mortuaries (separate houses, also known as “coffin houses”) is around 200,000, accounting for 2.7% of the city’s 7.4 million people. In education and statistics, less than 5% can be understood as a small probability. The proportion of hoarding households is only half of the statistical “small probability” and is not at all mainstream.
As a comparison, the number of people living in the basement, urban villages, and illegal group renting houses in the first-tier cities in the Mainland is probablyI have already surpassed Hong Kong.
It is still taking Shenzhen as an example. At present, there are about 11 million housing units in Shenzhen, of which the number of commercial housing is less than 2 million, and there are about 6 million housing in urban villages. These building quality, sanitary conditions, service facilities, and safety The urban villages, which are worrying in all aspects of sex, accommodate more than half of the resident population in Shenzhen.
In 2016, there were incomplete statistics indicating that Shenzhen had a population of more than 9.4 million people living in Chengzhong Village
Shenzhen Village in Shenzhen
More importantly, once the urban village is demolished, these lower-income tenants will have nowhere to go in this city, and Hong Kong’s “coffin house” households can at least queue up for public housing.
A city like Hong Kong, where nearly half of its population lives in welfare-type public housing, is living in a city where a majority of the population lives in a village in the city… Imagine what this is like.
Five, public housing security
The public housing system in Hong Kong is a relatively complete housing security system. According to the Hong Kong Housing Authority’s “2018 Housing Statistics”, 44.6% of the people in Hong Kong live in public housing in 2018, that is to say: