China has emerged as the world’s most overpriced real estate market, according to a recent study by Highland Cabinetry analyzing housing affordability across 40 countries.
The research, which evaluated price-to-income ratios, mortgage burdens, and rental costs, found China’s average property price of $4,988 per square meter far exceeds the monthly net salary of $942, resulting in a composite score of 58.4. Monthly mortgage payments average $2,145, more than double the typical income.
Argentina ranked second with a composite score of 57.3, driven by exorbitant mortgage rates of 75.8% and payments averaging $8,619 monthly—14 times higher than the country’s average salary of $596. Vietnam placed third (54.6) due to high mortgage rates relative to incomes, while Thailand followed closely (54.5) with property prices triple its average monthly wage.
Singapore, despite having the highest price per square meter globally at $18,329, ranked sixth (53.0) owing to lower mortgage burdens. South Korea (53.8) claimed fifth place, with property prices exceeding $10,000 per square meter and mortgage payments consuming nearly half of average salaries.
The Philippines (44.5), Portugal (39.5), Indonesia (38.0), and the Czech Republic (35.8) rounded out the list, each grappling with mismatches between housing costs and wages. Portugal’s average rent of $1,221, for instance, surpasses its $1,163 monthly salary.
A spokesperson for Highland Cabinetry noted that inflated housing prices often signal systemic economic issues, such as wage stagnation or speculative investment. “These disparities can deepen generational wealth gaps and urban migration trends,” they said.
The study underscores widening affordability crises in both emerging and developed economies, with mortgage burdens outpacing income growth in nearly all top-ranked nations. For full findings, visit Highland Cabinetry’s research portal.
