Can Hong Kong tame Link Reit’s greed for profit at the expense of public housing residents?
Regina Ip says Asia’s largest real estate investment trust should not be allowed to ignore its social responsibility to ensure that price and rental increases at its neighbourhood facilities remain reasonable for ordinary Hong Kong people
Hong Kong’s Link Reit, Asia’s largest real estate investment trust, was dogged by controversy even before its birth. In 2003, soon after the Housing Authority said it would sell a chunk of its retail facilities and car park spaces in public housing estates to private investors, concerns were expressed that privatisation could end up hurting the livelihood of poorer people.
In 2005, the Link Reit was successfully floated after the Court of Final Appeal rejected Lo’s application. Subsequent developments, however, fully vindicated Cheng’s and Lo’s forebodings. After taking over the properties, the Link Reit quickly renovated the facilities, raised rents and replaced local stores with retail chains. Soon, public housing residents had to pay much higher prices for daily necessities. Many low-income residents, including elderly people, had to travel long distances to buy cheaper food and other necessities.