Trade-offs are needed to solve Hong Kong's housing problems
Anthony Cheung says while not all in Hong Kong agree with the government's housing strategy, sitting on our hands is not an option. This is a critical juncture and much can be done, if we accept trade-offs
Housing stands out as one of the most critical social problems haunting Hong Kong today. Our "housing crisis" is characterised by a serious imbalance in supply and demand, housing prices and rents at a level beyond the affordability of the general public and out of line with our economic fundamentals, the proliferation of inadequately housed households and subdivided units, and long queues for public rental housing.
This administration accords high priority to housing. Our three-pronged objectives are: to provide public rental housing to the grass roots; to assist lower- to middle-income households realise their home-ownership aspirations; and, to maintain a healthy and stable private housing market. In 2012 and 2013, we introduced two rounds of demand-management measures which helped to contain market exuberance.
However, domestic demand for housing remains solid, so the ultimate solution to the current affordability crisis must lie in increasing supply continuously and with sufficient scale, so as to break the vicious cycle built up over the past years.
The new long-term housing strategy just released by the government has incorporated the steering committee's principal recommendations and the main views gathered during public consultation late last year. Under the vision to provide adequate and affordable housing for all families, we set a pragmatic supply-led strategy with a 60:40 public-private split in new housing production and a total supply target of 480,000 units in the coming decade.
We will improve circulation in public housing, explore new forms of subsidised home-ownership and make use of private-sector participation. We also seek to promote good sales and tenancy practices.
Setting a production target is the easier part. Delivering the target requires the adequate and timely supply of land, especially through new development areas, and the review and rezoning of some existing sites; it involves addressing local community concerns about traffic and environmental impact and provision of social facilities. Coping with rising building costs and construction industry capacity present further problems.
