EAS PROJ.docx - The absurd purchasing first home in Hong Kong without government assistance Hong Kong is a tiny cosmopolitan city in the world with a

EAS PROJ.docx - The absurd purchasing first home in Hong...

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The absurd purchasing first home in Hong Kong without government assistance Hong Kong is a tiny cosmopolitan city in the world with a hustle and bustle lifestyle, is widely known with the glorification of ‘Pearl of the Orient’ and ‘Food Paradise’. In fact, behind the prosperity and exuberance, Hong Kong has been the World's most unaffordable city for home buyers for eight consecutive years because of the problem of densely population. There is no denying that the Millennial generation is one of the major victims when the housing price in Hong Kong reaches the pinnacle every day since it has surmounted the financial burden of a substantial majority of them. Although someone might argue that it is eccentric and overindulgent if government assist young people to purchase their first house while it discourages them to be self-sufficient, it is still necessary for government to provide the subsidies to alleviate the effect of the inflation of apartments, narrow the gap between the rich and the poor as well as improve the youngsters’ living standard. To commence with, the salaries increase of Hong Kong youths cannot catch up with the skyrocketing inflation of apartments. Local young generation’s ultimate objective is owning a flat, but apartment inflation is a more severe economic problem in the long run. Not only fulfill the demand of corporations but the Hong Kong government also construction infrastructure and public facilities like libraries and hospitals for the locals. When there is a situation that demand for land is restricted by limited resources, the cost of residential land would become higher and higher. As a result, the transference of cost increase to the home buyers is the root reason to explain the plight for Hong Kong Millennials buying their first home. The conducted survey reported that most respondents think to purchase a flat is impossible in Hong Kong. Although the wage rate of young people increases by 6.18% in recently year (Census and Statistics Department, 2018), their wages still cannot catch up with
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the rising inflation of apartments. The inflation rate of the apartment from 2017 to 2018 is 9.73% which is higher than the increasing wages rate of 3.55% by nearly triple (Hong Kong Monthly Digest of Statistics, 2019). Apart from home inflation, the inflation rate should be put under consideration as well. The inflation rate in 2018 is 2.4% which means the average price level of products is increased by 2.4% and decreased the purchasing power of citizens (Stefanie Moya, 2019). They need to pay more expenditure on maintaining basic needs, like food, transportation and rental, but their salaries do not rise on the same scale. It reduces youngster’s affordability to own a flat. Based on the above statistics, it reflects youngsters cannot afford to buy an apartment in Hong Kong by themselves unless they can catch up or even exceed the inflation of apartment and inflation in Hong Kong. In case of inflation, the
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