Although Hong Kong is known to the outside world as a bastion of capitalism, where market forces reign supreme, it also boasts a sizeable public-housing programme.
At its peak, public housing estates accommodated about half the population. Today, excluding those who live in flats sold at subsidised rates and former tenants who have purchased their rental units, about 2 million people live in about 640,000 rental flats owned and managed by the Housing Authority.
Still, many of these sitting tenants are believed to have become well-off, in the sense that they can afford to live in private housing, either by paying market rent or by buying their own flat, but have not taken the option. Their exact number is hard to determine, however, as it depends on how 'well off' is defined. At present, public housing applicants are subject to a means test. But once they are assigned a rental unit, they are not subject to any more screening for 10 years.
From then on, they have to declare income, but not assets, every two years. Those with a household income exceeding the corresponding income limit for new applicants, and those who choose not to declare income, must pay 1.5 times the subsidised rent and rates, while those earning more than three times the limit pay double rent and rates.
Those paying double rent are also required to declare their assets - but only those whose assets are valued at more than 84 times that of new applicants are required to vacate their units.
For a four-person household, the relevant monthly income and asset limits that could see them evicted are $42,900 and $1,210,000 respectively.
For those who feel only low-income households should be eligible for public housing, the limits are certainly too lax, as many households earning and owning a lot less are paying more for their private accommodation.