Hong Kong retains title of most expensive city for home buyers despite 20% decline in property prices

29th June 2025 – (Hong Kong) According to the Deutsche Bank Research Institute’s latest “Mapping the World’s Prices” report, Hong Kong continues to hold its position as the world’s most expensive city to purchase a home, despite a 20 per cent decline in property prices over the past five years. In 2025, the ranking of the most costly cities for home purchases includes Zurich in second place, followed by Singapore, Seoul, Geneva, London, New York, Tel Aviv, Beijing, and Shanghai.

The report reveals that the average price for a flat in Hong Kong’s city centre remains staggering at US$25,946 per square metre, keeping the city ahead of rivals such as Zurich, Singapore, and New York. Released on Tuesday, the report analysed property prices across 69 cities globally.

However, the high property costs have negatively impacted Hong Kong’s quality of life, pushing it down to 48th place worldwide as residents grapple with affordability challenges. In terms of housing affordability, measured as mortgage payments relative to income, Hong Kong ranks among the least affordable cities globally, with a staggering 150 per cent. High mortgage payments significantly reduce after-tax income, with Beijing (220 per cent) and Shanghai (207 per cent) following closely behind.

The findings align with the Demographia International Housing Affordability survey from 2024, which noted that Hong Kong has maintained its status as the world’s most unaffordable property market for the 14th consecutive year. The average family would need to save their entire income for 16.7 years to afford the average home price, a slight improvement from 18.8 years the previous year.