Because urbanization AND population growth drives demand and supply has a tendency to always lag behind. HK has high rents because ... wait for it ... they are

Because urbanization AND population growth drives demand and supply has a tendency to always lag behind. HK has high rents because ... wait for it ... they are not building enough new housing. Why? Because most of the land is government owned, more than half of the population lives in public housing, and the HK version of "US employers pay healthcare insurance" is basically HK employers pay housing subsidy. Note, I'm not saying HK should just abolish rent control in the next five minutes and things will be fine. No, HK has many grave problems. (Of course starting with them being oppressed by the CCP.) Nor am I saying they should pave over the bay and start building. I'm simply saying that the HK market is in a pathological state. (Constrained supply, public stock is constant over the last ~2 decade, etc.)