Editorial | Despite the protests, focus on housing

With the market still grossly undersupplied, the government’s move to reduce its long-term housing target is bound to fuel scepticism. Whatever the projections, it remains the truth that the demand for affordable housing has outstripped supply. Unfortunately, the focus on this front has been diverted by the ongoing social unrest. Officials must strive to renew the momentum or the shortfall will only get worse.

The new target for total housing supply in the next decade has been cut by 20,000 flats to 430,000. This is the third reduction since the target of 480,000 was announced in 2014. The projection of lower demand and an increase in land supply means the shortfall in public flats would be 29,000 units, down from 67,000 estimated last year. The target for private flats in 10 years has been set at 129,000, with the supply in the next three to four years reaching 93,000.

It has to be asked why the numbers are so different after only a year. The housing minister dismissed claims that the government was playing with numbers, saying they were based on data and professional assessment. But the public can be excused for feeling short-changed. Currently, the waiting time for public rental flats can be as long as five years. The situation in the private market is just as woeful. New flats tend to be smaller, but are not necessarily more affordable. And more families are forced to live in subdivided flats.

It is worth noting that the mega land reclamation project in Lantau is not mentioned in this year’s report. Estimated to cost taxpayers hundreds of billions of dollars, the proposed reclamation comprising some 1,700 hectares has been hailed as the solution to the city’s housing crunch. Officials said it was omitted as it had yet to secure funding approval. It is difficult to see how the housing targets can be met without the new land.

Although the months-long protests – which can turn violent – do not occur as often as they used to, the crisis is far from over. The government may think that it would be difficult to get on with controversial projects. But the shortfall in housing will only worsen if the problem is not tackled expeditiously. Officials must redouble their efforts.