Page 10 - Homeownership and Youth Social Mobility: Where comes the feeling of hopelessness among youth, and how can we restore hope?

Private homeownership has therefore become more difficult for

degree graduates

Change in Affordability,

Degree Graduates (at Age 30-34)

Max. size of flat affordable by

degree graduates

Year New Territories Kowloon HK Island

In 2001 1,061 sq. ft. 1,027 sq. ft. 798 sq. ft.

In 2021 263 sq. ft. 244 sq. ft. 212 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 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 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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