Wait, you live by yourself?

From the movie StepBrothers

Back in the United States, it is common to move out of your parents' place once one reaches adolescence. The notion of having your own place is far better than living at home with your parents. Even though not economical, the idea of paying rent is worth the freedom and independence. Moreover, if you haven't moved out of your parents' place by the age of 30, dude, you need to grow up. It is time to move out. Unless you have a legitimate reason, it is odd that you still live in your parents' basement. 

Typical Residential
Buildings in Hong Kong

In Hong Kong, I live alone. However, when people asked me where I lived, and whether I lived alone, a few responses kept occurring,

"What? Why don't you live with your parents?"; "Do you have any family here?"; "Where are your parents?"; "Why are you paying rent?" ; " Wait... you live alone?";"Are you married/ Do you have a partner?"

I don't know the exact statistics but I've noticed a lot local college graduates who are single and still live with their parents. I would say about eight out of ten people  I meet who are single within the age range of 22-40, still live at home with their parents. 

Let's Examine WHY? 

1. Hong Kong Culture
2. Affordability Index
3. Soaring Property Prices

Hong Kong Culture

The Master said, ‘While your

parents are alive, you should not 

go too far afield in your travels. If

you do, your whereabouts 

should always be known.’

Analects IV, 19

If you are single, and have moved out of your parents' tiny 300 square foot apartment, Congratulations! Chances are that you have moved into a 200 square foot apartment all to yourself. Moreover, you probably pay more than half your annual salary. (WOOT) You are a rare outlier. You probably have been to the western part of the hemisphere and understand the idea of parental freedom.

So how does society view you for having your own place? Many will find it odd that you moved out of your parents place and suspect that your relationship with your parents isn't stable. There is this ancient Chinese concept called "Filial Piety". It is the notion of respecting and taking care of your parents when as they get older. I believe this should be emphasized in every society but there will be a day where you need to grow up and venture out on your own. 

In addition, There this other ancient Chinese concept called "Face", or status, which is the aspect of how an individual is perceived by people in the community. Therefore, since people here care about "FACE" (will talk more about this in a future post), its very discouraging for any young adult to move out of their parents' tiny apartment.

Affordability Index

I talked to many people in HK regarding to salary ranges for variety types of professions. They told me the average salary for an entry level college graduate in HK is roughly 10,000HKD -12,000HKD per month. (People can make more at McDonalds in America) 

I couldn't believe it because of how expensive things cost in Hong Kong. So I decided to find out more myself. I found some interesting fun facts on the HK government census website regarding to average Income per individual, property prices, etc. Hong Kong Facts Sheet

The median household income was 18,000HKD per month.  The average price per a square foot is roughly around 10,305. Let's do some basic math. Average HK flat is roughly 400 square feet. 400x 10,305 = Between 4-5 million HKD needed to buy a flat.

18,000 HKD/ Month x 12 months (1 year)= 216,000 (Annual Salary) 

Let's assume we don't need to eat food and we can save every dollar & we dont get any additional raises for the purpose of this calculation:

4,000,000 (Cost of a 400 square Flat)/ 216,000= 18.5 years

So, it would take roughly 18 years to buy a flat. At the age of 22 +18 = 40 years old.

The Hong Kong Government expects the HK people to buy their first flat at the age of 40.

Hai mai gau chor ah? (In Cantonese means 'What the heck?')係咪搞錯啊？

Soaring Property Prices

I was watching the Hong Kong 2012 Review on Pearl for New Year's eve. It had a fascinating analysis on the  property price. According to the show, seems that the main reason for the soaring property prices are from the rising influx of Mainland Chinese immigration in to Hong Kong. Found an interesting chart from this website on HK historical property price.

After 1997, Hong Kong returned to China. Property price drastically declined as shown in the graph. However, after 2003, there were more and more mainland chinese coming in to Hong Kong due to more opportunity. This large influx in population contributed to the rising demand for housing. Although the Hong Kong government passed many laws to try to regulate the housing market, prices of property prices continue to rise. As a result, making them unaffordable and not proportional for those making the typical annual Hong Kong salary. I'll have another post on closer analysis on property prices in the near future.


Bottom Line...

I believe the average Hong Kong individual honestly want independence from their parents. But, they just financially can't do it. In addition, they are obligated to take care of their parents.

There is gradual shift in social norms.

The other day, one of my friends got married. The individual and the fiance makes double the medium household income.I asked, "how are you able to buy your own place? My friend responded, " I'm moving in to my partner's parents' place. "

This represent whats going to happen in Hong Kong if property prices continue to be unaffordable. Many figure whats the point in saving when you can't even buy your own place. In addition, unaffordable property prices is making it more difficult to get married. Married couples are going to move in to their parents' places until they inherit it as their own.

I guess this trend can be viewed positively since Chinese people are all about filial piety and taking care of the parents. You can stay at home and live with your parents and save some money. Why not? Its just the smartest thing to do. If I had the chance, I would'n't live by myself after all...


HAPPY NEW YEARS!!!