But beyond that specific ranking that refers to 25 cities, the comparative data allow us to recognize the specific situation of the housing market in the capital of Argentina in relation to that currently in force in some of the main cities of the world.
House price in relation to income
To measure the relationship between income and home values, UBS analyzes the number of years that a service sector worker must spend to buy a 60 m2 apartment near the city center.
Like last year, Hong Kong was the city where the salary effort is the highest, remaining with 20 years as the necessary for the purchase of this type of housing unit. Meanwhile, at the opposite pole where the income ratio is more favorable in relation to house prices, Miami is located, where with 4 full years of salary you can buy a standard unit of 60 m2.
In the case of the City of Buenos Aires, taking the US $ 1,950 of the last average price per m2 actually paid for units with 3 rooms, the value of a 60 m2 unit would reach US $ 117,000. Crossing this data with the average remuneration of registered workers in the private sector that for last August it appears that the salary effort would be located in the 20 years of income. Buenos Aires would thus share the first place in the UBS ranking together with Hong Kong, as the cities where housing is the most expensive in relation to the salary of the inhabitants.
What about rents?
UBS also calculated the number of years of salary required to pay off the home purchase. In the same way, using the average rental value of a standard used apartment without amenities of 60 m2 in Buenos Aires and comparing with the sale value, the number of years of rental required to amortize the purchase would be 10% above the one that heads the ranking of the selected cities.
For USB, this is explained by the impossibility of accessing housing loans that would regulate the price of rents.
Source From: Ambito
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