Traineeinvestor Posted August 30, 2014 Author Report Share Posted August 30, 2014 One of problems with those sorts of comparisons is that they do not break the population down into the segments that buy private sector property and the segments that do not. Taking Hong Kong as an example, more than half the housing stock in HK is either paid for or very very heavily subsidised by the tax payer (including NT village housing). Although I keep coming across different data points, probably a slightly higher proportion of the population lives in the subsidised housing - mostly the lower earning members of the population. However the affordability comparisons compare private sector housing costs with the average (usually mean) incomes for the whole population which is grossly misleading in its own right and even more so when one considers that the proportion of people in subsidised housing varies hugely from country to country (with Hong Kong being one of the highest among the free market economies). There are of course other issues with these comparisons as well (e.g. tax rates, income allocation to transport and medical costs etc). Link to comment Share on other sites More sharing options...
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