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Hong Kong

Land is scarce and it is one of the most densely populated cities in the world. Naturally, real estate prices have been skyrocketing perpetually. Reports reveal $1 million will fetch you just a 20 square metres house and even a basic parking space will cost you millions! When it comes to luxury apartments, a square foot will require you to shell out a staggering $16,640. Apart from land-crunch, low interest rates too have played a part in inflating home prices. Flats are said to cost over 18 times the annual median income of denizens. The city also has steep rentals and is one of the most expensive places to set up an office (this often makes companies looking to expand into Asia think twice about setting up shop in HK). Experts have always warned about a sharp correction in prices, but so far there has been little signs of it.

Cities with red-hot property markets

Forking out a substantial part of your salary on EMIs for home loans or rents is definitely not fun. If anything, it is downright painful. And if you have been cribbing about it a lot lately, then consider the rates in these cities. It will immediately make you feel better.

Housing market of these cities have shown little signs of cooling and prices are disproportionately high, primarily on account of enormous demand and scarcity of properties. As a result, the poor are mostly priced out or forced to share matchbox-sized apartments with others, while the middle class spend decades in repaying hefty home loans or lose half their salaries on rents.

Just scroll through our slideshow to find out which cities are home to such red-hot property markets and also understand what makes them so darned expensive.