The escalating housing affordability crisis in Hong Kong has reached a critical point, prompting the Chief Executive, John Lee, to address this pressing issue during his latest annual policy address. With the city consistently rated as one of the least affordable places to live globally, particularly challenging for the youth, the government’s new strategies aim to alleviate the burden on residents—especially those under 40. This article examines the measures proposed by Lee, analyzing their potential impact and significance for Hong Kong’s housing landscape.
In his address, Lee announced specific initiatives aimed at easing access to subsidized housing for young applicants. One of the key proposals includes granting an additional ballot number to those under 40, thereby widening their chances of obtaining flats under the Home Ownership Scheme. Moreover, an increase in the quota for the “White Form Secondary Market Scheme” aims to facilitate smoother transactions of secondhand subsidized flats, with an additional 1,500 units reserved specifically for younger demographics.
These measures highlight the government’s recognition of the unique challenges that younger citizens face in a saturated housing market. Historically, young Hong Kongers have frequently delayed career advancements or salary increases to maintain their eligibility for public housing. The new initiatives seem to be a concerted effort by the government to reverse this trend and encourage young professionals to pursue opportunities without the fear of losing housing security.
The plight of young residents is compounded by the prevalence of “shoe-box sized” subdivided flats, which are notorious for their cramped living conditions and potential health risks. In an effort to tackle these substandard housing scenarios, the government plans to introduce a new rental system focusing on converting these inadequate units into what are termed “Basic Housing Units.” These upgraded units will aim to meet basic living standards, such as adequate window provision and minimum spatial requirements.
This initiative reflects a broader commitment to improving not just the quantity of housing but also its quality. With over 100,000 subdivided flats existing within the city, addressing these issues is critical for public health and safety, making it imperative for the government to prioritize such conversions.
Another pivotal component of Lee’s policy address is the commitment to boosting public housing supply. The Chief Executive anticipates the completion of approximately 9,500 new public housing units in the upcoming year, working toward an ambitious goal of constructing 30,000 units by 2027-2028. Given that the current waiting period for public housing has stretched to an average of 5.5 years, reducing this timeframe to 4.5 years by 2026-2027 would mark a significant improvement for the many families in dire need of stable housing solutions.
These strategies highlight a shift in policy focus under Lee’s administration—from previous priorities centered on national security and post-pandemic recovery to a more comprehensive approach aimed at enhancing the living standards of residents.
Despite the proactive steps announced by Lee, the question remains whether these initiatives will suffice in mitigating the ongoing housing crisis. The recent Demographia International Housing Affordability report has underscored the dire state of housing in Hong Kong, and while the proposed measures represent a positive move toward reform, many remain skeptical about their ultimate effectiveness.
The city’s enduring struggle to balance economic growth with affordable living standards must be addressed through not just immediate fixes but also sustained, long-term policy reforms.
As Hong Kong grapples with its housing crisis, the proposals outlined by John Lee could represent a significant turning point for urban housing policy. The emphasis on youth, quality upgrades to existing units, and increased public housing supply suggest a commitment to treating housing affordability as a priority issue. However, the real test will lie in the effectiveness and speed of these implementations, as residents will be eagerly watching how these policies translate into tangible change in their daily lives.