Free-market failure: Hongkongers need the government to fix the housing crisis, now

Mike Rowse says the trend towards smaller and smaller flats, and higher and higher prices needs to be arrested now. The government must ban non-permanent residents from buying a property, and enforce a minimum flat size - ideally not less than 700 sq ft

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Flats in Hong Kong are becoming smaller and pricier. Photo: Bloomberg

Published: 7:01am, 10 Sep 2018Updated: 7:01am, 10 Sep 2018

When I first saw the news that a local developer was building flats of just 123 square feet, I was overcome with a powerful cocktail of emotions. The first and strongest one was a deep sense of shame.

What kind of society have we created, I asked myself, where a major corporation could in all seriousness tell our young professionals that the residential flat they deserved to own was smaller than a reasonably sized parking space?

How much longer will it be – or could it be that we have already crossed the threshold – before a farm animal in Europe protected by animal welfare laws is assured of a living space greater than a Hong Kong resident’s?

Next came anger. What kind of government could oversee such a system and not explode into decisive political and administrative action? Whatever happened to the public housing programme and all those fine home ownership ideals?

Finally came concern. How long would it be before the victims of such a system became so furious that they rose up one night and overthrew it? Hong Kong people can be apathetic about many political and social issues, but even the mildest resident will reach breaking point if pushed too far. And 123 is several square feet too far.

The trend has been visible for some time, of course. Over the years, the size of residential dwellings offered for sale in the private sector has drifted from the 1500 sq ft mark to a 1,000-1,200 sq ft range, then 700-800 sq ft, and 500-600 sq ft.