Page 13 - Homeownership and Youth Social Mobility: Where comes the feeling of hopelessness among youth, and how can we restore hope?

Private homeownership becomes a more distant goal for

non-degree graduates

Change in Affordability,

Non-Degree Graduates (at Age 30-34)

Max. size of flat affordable by

non-degree graduates

Year New Territories Kowloon HK Island

In 2001 548 sq. ft. 539 sq. ft. 435 sq. ft.

In 2021 131 sq. ft. 122 sq. ft. 106 sq. ft.

Note: Maximum amount of affordability is calculated by assuming a contractual life of 30 years and a 90% Loan-to-value ratio; the interest rate is set in accordance with the prevailing mortgage arrangement
at the time, that are 2.625% (P – 2.5%) and 3.125% ( P – 2.75%) in 2001 and 2021, respectively. After calculating the maximum amount affordability of non-degree graduates, it is divided by the
average per square foot price of Class A to E units recorded by the Rating and Valuation Department in order to calculate the maximum size of flat that non-degree graduates could afford
Sources: Census and Statistics Department, Rating and Valuation Department, Hong Kong Economic Times, and Hong Kong Monetary Authority
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