The housing market in Bangladesh was booming and would not take long to have grown fully mature, had it not been for the pandemic. If we take a look back at some great places for investment in the past in Bangladesh, we would see the property price was rising at an exponential rate. The price of 1 Katha land in Gulshan, one of the most expensive areas in Bangladesh, went from BDT 22 lakhs to BDT 2.5 crores between 2000-2010, a 1036% increase in price compared to the previous decades. Fast forward to the present day, if you want to purchase an apartment in Dhaka, you have to spend an average of BDT 5000/sq. ft. which is not very affordable but not very expensive either. Of course, that is if you compare Bangladesh’s housing market to the rest of the world. But what are the most expensive housing markets in the world?
All the cities mentioned in this list are from the 16th Annual Demographia International Housing Affordability Survey: 2020. And the housing markets are ranked on middle income housing affordability, which uses the “median multiple”. The higher the number the least affordable the market is.
Hong Kong (20.8)
Asia’s World City or Hong Kong has been named the world’s most expensive housing market for the 10th consecutive year. Over the past twelve years, Hong Kong’s residential property prices have skyrocketed by 262%. In 2020, Hong Kong had the most expensive residential property market worldwide, with an average property price of 1.25 million U.S. dollars.
There are two types of housing unit offers in Hong Kong, private and public. The number of public rental housing units has been consistently rising since 2008. Nearly half of the public rental apartments in Hong Kong as of March 2018 were between 30 and 39.9 square meters. Not only has the number of public rental housing units increased since 2008, so have the private ones. However, there are more private housing units than public ones in Hong Kong, thanks to the Home Ownership Scheme in Hong Kong offered by the government.
Vancouver (11.9)
It comes as no surprise that Vancouver finds its way to the list of the most expensive housing markets in the world. Often named amongst the topmost cities for quality of life, Vancouver is also Canada’s most culturally diverse, cleanest and has some of the largest natural areas. And these are some of the reasons for its competitive real estate market.
Now if anyone wishes to buy a property in Vancouver, they can expect to pay an average of $9, 37,000 for a house. Which is way higher than the overall Canadian average. Vancouver is constrained by the sea on 3 sides and making more land is not that simple. That’s one of the main reasons why the downtown core is densely populated and land is very expensive in the area.
Sydney (11.0)
Sydney places third in the list of the most expensive housing markets in the world. Prospective buyers can expect to pay an average of $8,72,934 for a house. However, when it comes to explaining its ever-growing property market, Sydney has every reason to go for it. Its oceanfront location, laidback lifestyle and unrivaled climate make it one of the world’s most desirable locations to live in. Furthermore, Australia’s quick response to Covid-19 and the impressively effective measures against the pandemic has made the city yet more appealing to prospective buyers.
Melbourne (9.5)
While the Australian capital of Sydney has its own impressively lucrative property market, it is the coastal capital of the southeastern Australian state of Victoria, Melbourne, which has the world’s fourth most expensive housing market with an average price of $6,89,099. To those in the know, the high property prices in Melbourne, and indeed the rest of Australia, are a no-brainer. Melbourne not only boasts immediate proximity to some of the most important coastlines in the world but also acts as a worldwide hub for diplomacy and finance.
However, the Australian government has taken measures to regulate the country’s housing market, with strict regulations preventing non-residents from buying properties that aren’t new dwellings, off-the-plan properties under construction, or vacant land with a view to development. However, non-residents are required to seek approval from the Foreign Investment Review Board (FIRB) first.
Los Angeles (9.0)
The home of Hollywood; Los Angeles is one of the most extravagant areas not only in the US but also in the world. Behind the bright lights of North America’s most recognizable tourist spots and financial districts is an equally prosperous and increasingly competitive property market. According to the Demographia International Housing Affordability Survey, Los Angeles is the fourth most expensive area in the world when it comes to real estate with an average cost of $709,500.
The city has long had global recognition as the stomping ground of celebrities and millionaires. This city has America’s second-largest housing market, and for obvious reasons: it has a desirable Mediterranean climate, great culture and food, and a reputation as the birthplace for the Californian Dream.
There are a number of factors that determine the price of a property in a city; the culture, the lifestyle, residential benefits, the economy, the history, and the architecture are amongst them. The aforementioned cities have all those things, which ultimately made these the most expensive housing markets in the world.
