1. Reduced Affordability: The first major consequence of high house prices in Hong Kong is reduced affordability for individuals. This means that many people, especially those in the lower and middle-income brackets, may find it difficult to afford to buy a house. They may have to spend a larger proportion of their income on housing, leaving less for other necessities like food, healthcare, and education. This can lead to a lower standard of living and increased financial stress.

2. Increased Debt: The second consequence is that high house prices can lead to increased levels of debt. To afford a house, individuals may have to take on large mortgages. This can lead to high levels of debt, which can be a burden for many years. High levels of debt can also increase the risk of financial instability if individuals are unable to keep up with their mortgage payments. This can lead to a range of negative outcomes, including foreclosure and bankruptcy.

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1. Reduced Affordability: The first major consequence of high house prices in Hong Kong is reduced affordability for individuals. This means that many people, especially those in the lower and middle-income brackets, may find it difficult to afford to buy a house. They may have to spend a larger proportion of their income on housing, leaving less for other necessities like food, healthcare, and education. This can lead to a lower standard of living and increased financial stress.

2. Increased Debt: The second consequence is that high house prices can lead to increased levels of debt. To afford a house, individuals may have to take on large mortgages. This can lead to high levels of debt, which can be a burden for many years. High levels of debt can also increase the risk of financial instability if individuals are unable to keep up with their mortgage payments. This can lead to a range of negative outcomes, including foreclosure and bankruptcy.

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1. Reduced Affordability: The first major consequence of high house prices in Hong Kong is reduced affordability for individuals. This means that many people, especially those in the lower and middle-income brackets, may find it difficult to afford to buy a house. They may have to spend a larger proportion of their income on housing, leaving less for other necessities like food, healthcare, and education. This can lead to a lower standard of living and increased financial stress.

2. Increased Debt: The second consequence is that high house prices can lead to increased levels of debt. To afford a house, individuals may have to take on large mortgages. This can lead to high levels of debt, which can be a burden for many years. High levels of debt can also increase the risk of financial instability if individuals are unable to keep up with their mortgage payments. This can lead to a range of negative outcomes, including foreclosure and bankruptcy.

Explain two consequences of high house prices on individuals in Hong Kong. [4]

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