Does home ownership of young generation solely depend on the support of their parents in Hong Kong?

Abstract

Due to Quantitative easing from 2008, Hong Kong housing prices nearly quadrupled in 15 years, while the home ownership ratio plummeted to 49.8 % in 2019, which was a 20-year low. Despite there was a minor rise, 51.2 % in late 2020, the ratio remains significantly below the 60 % level compare with other advanced nations. Much research has focused on how affordability, house prices, income and interest rates make it difficult for young people to buy a home. However, parental support is the most important issues which influence the young generation to achieve their home ownership. According to Legco research which conducted at 2020, it showed as many as two-thirds of local homeowners have fully paid off their mortgage loans in 2016. They have strong purchasing power to purchase additional units as a second home for their children. In Hong Kong, there is a rumors that without the support of parents, it is impossible for young generation buy a home by their own efforts. Therefore, this article will explore whether the young generation can buy a home without any support from parents. In this study, we will discuss the background for the high property prices in Hong Kong Afterwards, it will explain what is home ownership, the relationship between high property prices and young generation affordability, and the role of parental support in young generation's home ownership. Questionnaires will then be conducted in specific regions, including several well-known starter home through questionnaires. We will investigate whether young generation need parental support to buy a home or not. Finally, it will be discussed what policies that implement can help young generation to buy property.