PHOTO: New Zealand property market: FILE
New research from comparethemarket.com.au reveals that New Zealand ranks 7th in the top ten most expensive countries to buy a house in, with a house price to income percentage of 17.6.
The research looked at average property prices per square metre and the average disposable household income in each country to calculate the cost per square metre as a percentage of annual income.
You can view the research in full here: https://comparethemarket.com.
The top ten most expensive countries to buy a house in:
Rank | Country | Average Disposable Household Income (AUD) | Average Price per m2 (AUD) | House Price (per m2) to Income % |
1 | South Korea | A$32,385 | A$12,810 | 39.6 |
2 | Israel | A$36,797 | A$9,780 | 26.6 |
3 | Switzerland | A$55,450 | A$14,694 | 26.5 |
4 | Luxembourg | A$58,111 | A$13,748 | 23.7 |
5 | Japan | A$44,101 | A$10,212 | 23.2 |
6 | France | A$46,330 | A$9,350 | 20.2 |
7 | New Zealand | A$37,110 | A$6,526 | 17.6 |
8 | United Kingdom | A$42,498 | A$6,898 | 16.2 |
9 | Czech Republic | A$31,750 | A$5,065 | 16.0 |
10 | Sweden | A$46,305 | A$7,380 | 15.9 |
South Korea emerged as the least affordable country for buying a house, due to an average property costing a whopping A$12,810 per square metre, and an average household income of A$32,385, which meant South Korea had the highest affordability ratio on our list, 39.6%
Following South Korea as the second least affordable country to purchase a property was Israel, where the average household income was slightly higher (A$36,797), although property prices were a bit lower too (A$9,780), for an affordability ratio of (26.6%).
The next three least affordable nations on the list are all known for having a high cost of living: Switzerland (26.5%), Luxembourg (23.7%) and Japan (23.2%).
You can view how affordable it is to buy a house around the rest of the world, by simply clicking here.
