A shoebox apartment in Hong Kong just sold for $255,000 U.S. dollars according to the property brokerage Midland Holdings via Bloomberg.The apartment was just 420 square feet, which is barely enough space to live alone. Worse yet, it was in a 26-year old government-built housing project, and was in the Sham Shui Po area of Kowloon, which means it wasn’t even on Hong Kong island proper.
The property sold for $607 per square foot, which means a 3’x2′ jacket closet would cost over $3,600, assuming the apartment even made space for one.
What’s going on? Hong Kong housing prices are up 45% since the start of 2009, thanks to low mortgage rates fuelled by the Hong Kong dollar’s peg to the U.S. dollar and ultra-low interest rates in the U.S.. Price rises are now spreading beyond the most esteemed locations, making affordability for the average Hong Konger a major concern.