How to create more affordable housing in Hong Kong: appeal to New Territories landowners’ profit instincts

Bernard Chan says there is no quick fix for Hong Kong’s housing woes, but a win-win arrangement with landowners in the New Territories could free up sites for development

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An image from a photo exhibition featuring residents of subdivided flats in Hong Kong. Photo: SoCO/ Benny Lam

Published: 12:52pm, 12 Apr 2018Updated: 7:44pm, 12 Apr 2018

Hong Kong’s current government came into office declaring that it would give top priority to solving the city’s housing problems. As it approaches the end of its first year in power, we are likely to hear more criticism that our top officials have not done enough.

It is understandable that people are frustrated at the way that private-sector housing is becoming less affordable and demand for subsidised housing is rising faster than supply.

People talk about a “housing crisis” in Hong Kong. They mean a very serious immediate problem – especially the rising number of people living in subdivided flats.

Watch: Explaining Hong Kong’s housing crisis

There is no simple, quick solution to this. Even a major temporary housing programme would take years to implement. Nonetheless, officials are exploring possible new ways to boost supply in the near term. The administration is looking at increasing residential density. It has even mentioned the idea of requiring developers to release completed flats more quickly.

It seems that everyone has a favourite solution – and one person’s favourite is usually bitterly opposed by someone else

Another factor is that – looking back – previous administrations did not plan for sufficient land supply. It is essential that this government gets land supply back on track.

So we have two broadly separate problems. First is a near-term shortage of affordable homes, which feeds into public anger but cannot be fixed at the push of a button. The second is ensuring a supply of land to make sure we do not end up with this situation in the 2020s and 2030s.

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