Hong Kong Housing Stock 2007

Hong Kong, known for its towering skyscrapers and bustling streets, also faces significant challenges in providing adequate housing for its population. The high population density and limited land availability have led to a complex housing landscape, with a mix of public rental housing, subsidised home ownership, and private sector accommodations. This article will delve into the various aspects of Hong Kong housing, focusing on the government’s efforts to ensure affordability and accessibility for all residents.

The Hong Kong government has long recognised the need to provide housing support for low-income families who cannot afford private rental accommodation. Public rental housing (PRH) serves as a crucial safety net for these families, offering affordable and stable living conditions. As of the second quarter of 2022, approximately 2.16 million people, or about 30% of the population, lived in PRH flats. The Housing Authority aims to provide the first flat offer to general applicants within an average of three years. However, the actual waiting time can be longer, with the average wait reaching about 6.0 years for those housed in the past 12 months.

To ensure that PRH flats are allocated to those in genuine need, the Housing Authority implements strict eligibility criteria. Applicants must be at least 18 years old, reside in Hong Kong, and not own any domestic property. Comprehensive means tests are conducted to assess income and assets, with limits set to ensure that only those who qualify can benefit from this program. Additionally, the rent for PRH flats is set at an affordable level, with adjustments made every two years based on changes in the overall household income of PRH tenants.

In addition to public rental housing, the government also offers subsidised home ownership schemes to help families achieve their dream of owning a home. The Home Ownership Scheme (HOS) and the Green Form Subsidised Home Ownership Scheme (GSH) are two key programs designed to support this goal. The HOS allows eligible applicants to purchase flats at a subsidised price, with the option to pay a premium to remove alienation restrictions and sell the property in the open market. The GSH, regularised in 2018, provides an alternative avenue for Green Form applicants to achieve home ownership.

The government has also introduced the White Form Secondary Market Scheme (WSM) to allow buyers with White Form status to purchase subsidised sale flats with a premium unpaid in the secondary market. This scheme has been maintained with an annual quota to meet the demand for affordable housing options. Furthermore, the “Starter Homes” pilot projects aim to assist higher-income families who are not eligible for HOS but cannot afford private housing.

While public and subsidised housing options are essential for many residents, the private sector remains a significant part of Hong Kong’s housing landscape. With average prices reaching US$25,000 per square meter, Hong Kong is one of the most expensive real estate markets in the world. A modest two-bedroom condominium can easily exceed US$2 million. Despite the high costs, the private sector offers a wide range of housing options, from luxury apartments in prime locations like The Peak and Mid-Levels to more affordable options in the New Territories.

Foreign buyers are allowed to purchase property in Hong Kong with relatively few restrictions. However, they must pay Ad Valorem Stamp Duty (AVD), ranging from HK$100 to 4.25% of the transaction value. Additionally, the government has implemented measures to stabilise the residential property market, including steady land supply and appropriate demand-side management.

The ageing population in Hong Kong has led to the development of housing options specifically designed for the elderly. The Housing Authority offers a concessionary initiative that allows under-occupied households with members aged 70 or above to enjoy lifetime full rent exemption upon transferring to smaller units. This initiative aims to provide a rent-free housing option for elderly households and increase the supply of larger units for families awaiting PRH allocation.

The Housing Society also operates the Senior Citizen Residence Scheme, which provides purpose-built housing with integrated health care facilities on a “lease-for-life” basis. These initiatives reflect the government’s commitment to ensuring that elderly residents have access to suitable and affordable housing options.

Hong Kong’s housing landscape is a complex interplay of public, subsidised, and private sector accommodations. The government’s efforts to provide affordable housing through public rental and subsidised home ownership schemes are crucial in addressing the needs of low-income families and ensuring social stability. While the private sector continues to dominate the high-end market, the government’s focus on increasing housing supply and optimising existing resources remains essential. As the population grows and ages, innovative solutions and continued investment in housing infrastructure will be vital to meet the evolving needs of Hong Kong residents.

For more detailed information on Hong Kong housing policies and programs, you can visit the following links: