A recent study by Highland Cabinetry analyzed over 40 countries to identify the most overpriced real estate markets. The research compared the markets across key factors, including price per square meter, renting price, average salary, and yearly mortgage rates. The study also calculated price-to-income and mortgage burden ratios to compare housing affordability and potential overpricing.
Here’s the summary of the findings:
| Country | Average Price for Buying Apartment Per Sq M | Average Price for Renting Apartment | Average Monthly Net Salary (USD) | Yearly Mortgage Interest Rate Fixed | Monthly Mortgage Payment | Mortgage Burden Ratio | Composite Score |
| China | $4,988 | $569 | $942 | 4.16% | $2,145 | 2.28 | 58.42 |
| Argentina | $1,948 | $563 | $596 | 75.84% | $8,619 | 14.46 | 57.38 |
| Vietnam | $2,298 | $526 | $483 | 9.40% | $1,489 | 3.08 | 54.61 |
| Thailand | $3,019 | $649 | $634 | 5.76% | $1,485 | 2.34 | 54.54 |
| South Korea | $10,295 | $880 | $2,336 | 4.51% | $4,563 | 1.95 | 53.88 |
| Singapore | $18,329 | $3,587 | $3,742 | 3.24% | $7,271 | 1.94 | 53.07 |
| Philippines | $1,669 | $387 | $410 | 7.28% | $925 | 2.26 | 44.53 |
| Portugal | $3,424 | $1,221 | $1,163 | 4.77% | $1,551 | 1.33 | 39.57 |
| Indonesia | $942 | $487 | $367 | 9.25% | $604 | 1.65 | 38.03 |
| Czech Republic | $4,271 | $990 | $1,640 | 5.52% | $2,060 | 1.26 | 35.87 |
You can access the full research findings by following this link.
The country with the most overpriced real estate market is China, with a score of 58.4, reflecting high real estate prices and mortgage burdens. China has the third highest price per square meter at $4,988, and monthly mortgage payments come to $2,145. At the same time, the salaries are lower, amounting to $942 a month, showing a big gap between real estate prices and residents’ financial opportunities.
Argentina ranks second in the list of the most overpriced real estate markets in the world, with a score of 57.3. The country has the highest mortgage rates, at 75.8%, with monthly mortgage payments totaling $8,619. This leads to the highest mortgage burden ratio at 14.4.
Vietnam holds third place, scoring 54.6. The average price of real estate is twice as cheap as in China at $2,298 per square meter, but the mortgage rates are higher than in China, at 9.4%. The rent here is similar to Argentina and Vietnam, averaging $526.
Thailand follows closely with fourth place and a score of 54.5. The monthly mortgage comes to $1,485, but it’s still over 2 times higher than an average salary in the country. Real estate in Thailand is more expensive than in Vietnam or Argentina, at $3,109 per square meter.
South Korea ranks fifth in the list of the countries with the most overpriced real estate, getting a score of 53.8. The country has the second most expensive real estate in the top 10 ($10,295 per square meter) and monthly mortgage payments of $4,563. At the same time, the mortgage rate in South Korea is lower than in Thailand or Vietnam, at 4.51%.
Singapore is sixth, with a score of 53, less than a point away from South Korea. Singapore has the most expensive real estate among the top 10, at $18,329 per square meter, which is 3.5 times more expensive than in China. Singapore has the lowest mortgage rate in the ranking, but it still amounts to $7,271 monthly.
Philippines holds seventh place, getting a score of 44.5. The real estate prices here are the cheapest in the ranking, but it is difficult to afford for residents, who have an average salary of $410. Philippines also has high mortgage rates at 7.28%, making it more difficult to afford a home.
In eighth place is Portugal, scoring 39.5. Real estate prices average $3,424, while rent is the second highest on the list at $1,221. Both monthly mortgage payments and rent in Portugal are higher than the average salary of $1,163.
Indonesia is ninth, getting a score of 38. The price for real estate here is cheaper than in other countries in the top 10 at $942 per square meter, but the average salary is 2.5 smaller, and homebuyers experience mortgage burden with an index of 1.65.
Czech Republic closes the ranking of the most overpriced real estate markets in the world with tenth place and a score of 35.8. The real estate prices here are a little cheaper than in China, at $4,271 per square meter, but the mortgage rates are higher (5.52%).
A spokesperson for Highland Cabinetry commented on the study: “When real estate prices rise far beyond what average citizens earn, it often signals deeper economic imbalances unique to each country. In some cases, it may reflect a booming investor-driven market, while in others, it exposes wage stagnation or housing shortages. These disparities can shape everything from urban migration to generational wealth gaps, with some countries facing long-term affordability crises.”