I guess one of the great things about Hong Kong is that many places are not that far from town. I live less than 45 minutes from SoHo etc. which is a reasonable trip in any city. In fact, I would compare it to a choice between living in, say, central London or Sydney and living the high life, but paying for it, and living out in the 'burbs and having more space but less enjoyment. Perhaps this isn't the right analogy though - as I say, I've never really spent a significant part of my life anywhere else.
Also, that young SO may well want to spend his first few years in the heart of town, but he may not. Depends if he's married or not I guess (and with or without girlfriend...!)
I'd agree that on the Island, that size would be tricky to get for anything less than $30k in mortgage - except maybe South Horizons I guess.
All I'm saying is, I'm managing it, enjoying it, and others I know do too. I'm married with a kid on the way, and with these new allowances, I'll be doing pretty well. Certainly it's expensive here, but the tax helps - on the flip side, I just can't see how GA or regional pay rates get you anywhere in Oz/Canada/US with 40+% marginal rates.