Hong Kong and Vancouver are two of the most unaffordable cities to buy property, according to the Demographia International Housing Affordability Survey published Tuesday.
In the 2014 survey, Hong Kong was branded the most unaffordable, followed by Vancouver and San Francisco. Australia's Sydney and Melbourne followed in the fourth and fifth positions.
The Demographia survey looked at 360 cities in nine countries: Australia, Canada, Hong Kong, Ireland, Japan, New Zealand, Singapore, the U.K. and the U.S. Using a median multiple – a World Bank and United Nations evaluation method – it determined whether they fell into one of four categories: severely unaffordable, seriously unaffordable, moderately unaffordable and affordable.
Hong Kong's average home price rose to 14.9 times gross annual median household income from 13.5 times in 2013, the highest ever level recorded by the survey in its ten-year history.
Hong Kong.Jerome Favre | Bloomberg | Getty Images
Many analysts have warned that a bubble is forming in Hong Kong's red hot property market, where home prices have more than doubled since 2009, as strong demand from mainland China and record-low mortgage rates have driven growth.
Warnings have also been sounded about Canada and Australia, where low interest rate environments and strong demand from Asia has also fueled record demand there as well. Canadian home prices are up nearly 100 percent since 2000.
According to the survey, homes in Vancouver rose to 10.3 times income, and San Francisco's median multiple was clocked at 9.2, a sharp deterioration from last year's 7.8.
Demographia said they were concerned about the sharp deterioration in home price affordability in California, where 11 of the most unaffordable markets in the U.S. are located.