High housing prices have always been a label in Hong Kong. in order to improve people's livelihood, Hong Kong Chief Executive Carrie Lam proposed in his policy address on October 16, 2019.Relaxation of residential property loan-to-value ratioThe new policy.

According to the new policy, Hong Kong's first home buyers can buy a house with an ultra-low down payment of 10 per cent when the total price is no more than HK $8 million, which reduces the pressure on young people to buy a house. Hong Kong has indeed shown sincerity in order to help young people buy a house.

Many people blame the root cause of the Hong Kong 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 make an all-round analysis and comparison:How difficult is it for Hong Kong people to buy a house?And, is it as difficult as the first-tier cities in the mainland?

The answer is different from what most people think.

I. the income of Hong Kong people far exceeds that of residents of first-tier cities in the mainland.

When it comes to buying a house, you can't get around income. Hong Kong's median monthly salary in 2018 was HK $17500, an increase of nearly 50% over eight years compared with HK $11800 in 2010, far outpacing local GDP growth and inflation. Blindly emphasizing that our compatriots' income is low, there is no growth or there is no future, it is obviously confusing black and white.

Let's take a look at the representatives of first-tier cities: across the river from Hong Kong.ShenzhenWhat is the level of income?

The Shenzhen Municipal Bureau of Human Resources and Social Security issued the "wage guidance Price of Shenzhen Human Resources Market in 2018". On page 6 of the document, it shows the income of local residents in 2018.The median wage in Shenzhen in 2018 is5069 yuan per month.

Based on the above official authoritative data, the median monthly salaries of Hong Kong and Shenzhen in 2018 are HK $17500 and RMB 5069 respectively, that is,The income level of ordinary people in Hong Kong is more than three times that of Shenzhen.

As Hong Kong and Shenzhen are both cities with a large gap between the rich and the poor, the median is more representative and persuasive than the average.Even if we look at the average, the per capita income of Hong Kong is still more than three times that of Shenzhen.

Hong Kong people not only have a high income, but also have ultra-low personal income tax.Taking a middle-and high-income family with an annual income of HK $1 million as an example, it is assumed that the husband and wife each have an annual income of HK $500000, the family has a child, and the couple supports four parents over the age of 60 who do not live together. According to the income tax form and relief plan for Hong Kong's fiscal year 2019-2020, the personal income tax paid by husband and wife for this year is as follows:34780 Hong Kong dollars. Ultra-low tax rates make Hong Kong people have more purchasing power and have more power in the face of high housing prices.

Second, housing prices in Hong Kong are not so exaggerated.

Due to the relatively smaller area and more compact structure of housing in Hong Kong, the total price of commercial housing in Hong Kong is not as high as most people think.In 2018, the median price of real estate in Hong Kong is 5.4 million Hong Kong dollars (4.85 million RMB) and 3.52 million RMB in Shenzhen. after exchange rate conversion, the total median price of real estate in Hong Kong is only 38% higher than that in Shenzhen, while that in Hong KongThe median income is more than three times that of Shenzhen.。

Don't think that more than HK $5 million can buy nothing in Hong Kong. the two-bedroom apartment in Yuen long in the picture below is an example. Although the area is small, the quality of the house is not poor (much better than the old and dilapidated houses in the first-tier cities in the mainland). There are shopping malls, schools and pharmacies in the surrounding area, and there is a subway station downstairs. public transport takes 30 minutes to Tsuen Wan and 43 minutes to Tsim Sha Tsui. After the rapid doubling of house prices in the mainland over the past few years, prices in Hong Kong do not look so high.

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 home buyers can use it.10% down paymentBuy properties under HK $8 million, while in Shenzhen, the minimum mortgage ratio for the first mortgage is 30%, which is also 30% in Shanghai and Guangzhou, and 35% in Beijing.

The ultra-low mortgage interest rates in Hong Kong have also reduced the burden on Hong Kong people to buy houses.The real interest rate is only 2.25%, while Shenzhen currently pays no less than 5.15% for the first home loan in accordance with the latest LPR mortgage rules.

The loan interest rate has a decisive impact on the burden of borrowers, which is also a 30-year 4 million mortgage. Simply calculated, the monthly payments corresponding to 2.25% and 5.15% interest rates are 15300 and 21800 respectively, and the latter has an extra monthly burden of 6500 yuan. The cash flow of 6500 yuan per month is not a small number.

IV. The truth of the "coffin room"

Is there anyone living in a "coffin room" in Hong Kong? Of course there are, but only a few.We cannot generalize the minority as the situation of the majority.

At present, the rate of home ownership in Hong Kong is 50%, and the number of people living in private housing (separated houses, that is, "coffin rooms") is about 200000.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, and the proportion of private housing households is only half of the statistical "small probability", which is not the mainstream at all.

For comparison, first-tier cities in the mainland live inBasement, village in the city, illegal group rentingI am afraid that the number and proportion of the population in China has long exceeded that of Hong Kong.

Or take Shenzhen as an example. At present, the total number of housing units in Shenzhen is about 11 million, of which the number of commercial housing is not more than 2 million, and there are about 6 million housing units in villages in the city. These urban villages, which are worrying in terms of building quality, health conditions, service facilities, and safety, accommodate more than half of the resident population of Shenzhen.

More importantly, once the village in the city is demolished, these low-income tenants will have nowhere to go in the city, and Hong Kong's "coffin house" tenants will at least be able to queue up for public housing.

Hong Kong, a city where nearly half of its population lives in welfare public housing, is laughed at by a city where more than half of its population lives in urban villages. Imagine what kind of scene this is.

V. Protection of public housing

Hong Kong's public housing system is a relatively sound 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.In other words, nearly half of the people live in welfare housing provided by the government, and the fact that such a proportion can be achieved shows that local efforts have been made in housing security, although it is not perfect.

What is the cost of living in public housing? Housing Statistics 2018 also gives the answer. The average monthly rent for Hong Kong Island, Kowloon and the New Territories in 2019 is HK $67 per square meter, HK $75 per square meter and HK $60 per square meter respectively. This makes the monthly rent of most public housing no more than 3000 Hong Kong dollars per month, and the rate of increase is limited. It is also very easy for blue-collar workers such as truck drivers and restaurant waiters who earn more than 20, 000 a month to live in public housing.

Public housing also gives people more choices. On the one hand, citizens can enjoy public housing with ultra-low rents for a long time; on the other hand, public housing has greatly saved tenants' rental expenses, so that they can save up a down payment to buy their own commercial housing in the future.

What if the economy is so difficult that public housing cannot afford to live? Don't worry, there are tailor-made products for poor citizens in Hong Kong.Rent Assistance SchemeAs long as the broad standards are met, the already low rents of public housing can be waived.

Of course, the public housing system is not perfect. At present, the problem facing public housing is also obvious, that is, the waiting time is too long, and the average waiting time is as long as 5.4 years. During these 5.4 years, many people have spent a lot of rent or suffered very poor living conditions.Most of the residents of the "coffin room" are actually queues.They are not desperate but waiting too hard. Fortunately, the Hong Kong government is aware of the problem, is stepping up efforts to provide public housing, and has formulated"go upstairs in three years."We hope that some of our compatriots in difficulties in the future will be able to live and work in peace and contentment more easily than they do today.

Don't worry about property speculation caused by relaxing the loan-to-value ratio.

There are concerns that relaxing the loan-to-value ratio will trigger a new round of house price rises, but this is unlikely to happen in Hong Kong. Therefore, while reducing the down payment, the monthly payment of home buyers increases with the decrease of the down payment. It is important to note thatLocal commercial banks in Hong Kong have very strict stress tests for lenders.If a family has to contribute HK $20,000 a month, there is no need to think about a stable monthly income of more than HK $40,000.

In contrast, in some mainland cities, fake flowing water and false income certificates when applying for housing loans can be done in advance, or even forged and stamped directly. this is common in first-tier cities, but this kind of behavior is a loan fraud in Hong Kong and is subject to criminal investigation. It is precisely because of the strict examination of housing loans that Hong Kong housing prices will not be speculated to such a terrible rent-to-sale ratio in the mainland.

Due to the strict financial supervision, the reduction of the down payment ratio by the Hong Kong government will not promote the sharp rise in local house prices.For ordinary people, the advantages of the new deal outweigh the disadvantages.

VII. Advantages of the mainland

It seems that it is easier for some young people in the mainland to buy a house than their peers in Hong Kong, only because they dare to use the "six wallets" of their elders.

As the previous generation in the mainland enjoyed the development dividend and inherited the habit of frugality, they accumulated a certain amount of wealth, which makes young people more and more justified in eating old age. The relative ease of buying a house does not mean that it is less difficult to buy, but because more resources are available and dare to use it.

Another possible advantage of the mainland: many people think that there are many cities in the mainland and there is a lot of room for choice, and first-tier cities will retreat to the second and third lines if they are too expensive, but Hong Kong people have much less room to choose. Is this really the case?.

This is totally wrong because Hong Kong people can also live and work in mainland cities that we can choose. On July 28, 2018, the state issued the decision on canceling a number of Administrative licenses, formally canceling the employment permits for Hong Kong, Macao and Taiwan personnel in the mainland. Compatriots can use valid identity documents such as Hong Kong, Macao and Taiwan residents' residence permits, Hong Kong and Macao residents' entry and exit permits to and from the mainland, and Taiwan residents' travel permits to and from the mainland to handle human resources, social security and other business.

Recently, Hong Kong people have also obtained the qualification to buy houses in Guangdong-Hong Kong-Macau Greater Bay Area's nine mainland cities, exempting them from living, studying and working there. It is proved that Hong Kong residents enjoy the same treatment as mainland residents here.(it is more relaxed than mainlanders in terms of eligibility to buy a house.)。

Not only do Hong Kong people enjoy care in the mainland, but Hong Kong people also have more room for overseas choice. as a former British colony and a long-standing international free port, it is much easier for Hong Kong people to go abroad, emigrate or invest overseas than the mainland. Hong Kong people have great influence in Canada, Australia, New Zealand and other places. Vancouver in Canada even has the nickname Hongcouver. In the United States, due to the rules of place of birth, Hong Kong people are not scheduled to apply for EB-5 investment immigration, while the waiting time for mainland applicants may be more than 10 years.

In other words:Some choices for mainlanders are available to Hong Kong people, while those for Hong Kong people are not necessarily available to mainlanders.

VIII. Summary

The median of Hong KongThe total housing price is only 38% higher than that in Shenzhen, the income of residents is more than three times that of Shenzhen, the down payment ratio is only 1/3 of the lowest level in Shenzhen, and the mortgage interest rate is only 2/5 of that in Shenzhen.The situation in other first-tier cities is similar to that in Shenzhen

Back to the beginning of the question.How difficult is it for Hong Kong people to buy a house?The answer is that it is indeed very difficult, but it is not as difficult as we thought, and it is even easier than some cities in the mainland.

On the other hand, if you use six wallets, it is a plug-in, and the cost of emptying six wallets will be multiplied in the aging society in the near future.

Many people like to set up a "very miserable" person for others, so that they feel better, but in fact, this is not the case. We should avoid the embarrassing behavior of "a hundred steps laughing at fifty steps". Instead of deceiving ourselves and others, we should think more and work hard to make our lives better.