What is worse, this cancer got exported to mainland China in the 1990s and it was systematically rolled out for all major cities there. $1.8m buys you an 80sqm new apartment in Shanghai in an below average location, when the median household income in Shanghai is definitely lower than US$20k.
It is lucky to be living in HK as there are still public housing options. In cities like Shanghai and Beijing, using the national household median income figure, a Chinese peasant needs to start saving the deposit from the Ming Dynasty (1368–1644) to be able to afford an average apartment there.
http://www.demographia.com/dhi.pdf
The top 10 least affordable with respect to median price/income ratios:
China Hong Kong 18.1
Australia Sydney, NSW, 12.2
Canada Vancouver, BC 11.8
N.Z. Auckland 10.0
U.S. San Jose, CA 9.6
Australia Melbourne, VIC 9.5
U.S. Honolulu, HI 9.4
U.S. Los Angeles, CA 9.3
U.S. San Francisco, CA 9.2
U.K. Bournemouth & Dorset 8.9For household who already own, their existing apartment also appreciated, so what matters is the cost of trading up. The hardest hit group are younger people between 20 and 35 who are stuck in their parents house for probably forever. 3 generations under 1 roof is pretty common.
Consider Hong Kong as an (extreme) example, where leaving the city means emigrating to another country with another language etc. (yes, HK is technically a Special Administrative Region of China, but can be considered standalone in this respect).
The median apartment price/income ratio here is 18, compared to a US average of 3.9 (the highest cities in the linked article are 13) [1].
These ratios also don't consider what you actually get. The average size of new apartments sold this year in HK was 610 square feet at an average price of US$1.8m and one new development offers apartments the size of Tesla Model X for ~US$500,000 [0].
If you want to go larger, the per square foot cost goes up. At the extreme end, consider a 4000 square foot townhouse that costs US$21,190/square foot [2].
A more ridiculous example is perhaps the sale of a car park earlier this year for US$600,000.
For reference, the median household income is ~US$38k. [1]
Unfortunately those with the most housing affordability issues are those that are least capable of leaving.
[0] https://www.bloomberg.com/news/features/2017-06-14/you-can-b...
[1] http://www.demographia.com/dhi.pdf
[2]http://time.com/4752342/worlds-most-expensive-house-square-f...