One of the reasons for such high housing costs is the influx of investment money. For example, this http://en.wikipedia.org/wiki/The_Beverly_Hills apartment complex is mostly empty. Most of the houses bought up by rich mainlanders looking to park their money somewhere that would still grow their investment.

Secondly, there are cheaper alternatives. Living in teh New Territories can be tremendously more cash efficient. I live in the hills in a house, 2 floors, 3 bedroom, with a garden, and pay less than $2500 USD per month.