Can you guess where’s the least affordable home market? No it’s not Australia – not by a long shot.
According to Bloomberg it’s Mumbai in India!
The average Indian would need to work for three centuries to pay for a luxury home in Mumbai, making that city the least affordable in the world for locals, according to an analysis of real estate and wages.
Apparently a 100 square metre luxury residence in Mumbai costs about $US1.14 million, or 308 times the average annual income in India.
Just to put things into perspective the same study suggests that it would take 54 years of average Australian income to buy an equivalent 100 square metre apartment in a prime Sydney property location.
Shanghai buyers would need 233 times the per-capita income in China and Moscow inhabitants 144 times Russian earnings. [sam id=31 codes=’true’]
Singapore and New York home buyers would need 43 years and 48 years, respectively, for equivalent residences using national income averages, according the Knight Frank Prime International Residential Index which is compiled using the top five per cent of districts in each city.
The fact that the most expensive markets are in developing countries rather than in more affluent developed nations isn’t really a surprise.
If you think about it there are big differences in wealth levels in emerging markets compared to the developed world.
In the early stages of growth in these markets some people make substantial fortunes, but it takes time for this to trickle down as a middle class develops and generate its own wealth.”
Maybe we shouldn’t complain about the Australian property markets after all?
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