Hit by a pandemic and social strife, Hong Kong needs a major housing boost
- A suspended scheme allowing tenants in public rental housing to buy their own home at a discount should be brought back to boost income for the government, increase job and business opportunities, ease social discontent and rebuild Hongkongers’ confidence in the city’s future
But, for the grass roots in society, this is easier said than done; most cannot afford to buy a flat in the private market with their savings alone. The government could help them by relaunching the Tenants Purchase Scheme.
Selling public rental housing now will bring in huge income for the government. Professor Richard Y.C. Wong, chair of economics at the University of Hong Kong, calculated that the land value of public rental housing would be HK$4 trillion.
The sale of these flats would help fill up our depleted public coffers, while also saving in management and maintenance costs. And the tenants themselves would benefit because they could buy their own homes at huge discounts.
How to stimulate Hong Kong’s post-pandemic economy is one of the city’s most pressing concerns. There are precedents we could follow. In the wake of the global financial crisis, the government in 2009 rolled out the “Operation Building Bright” initiative to refurbish private buildings.
A large-scale refurbishment of public rental housing estates, to prepare for the relaunch of the Tenants Purchase Scheme, could be similarly beneficial. Not only would it help create jobs, it would increase business opportunities in trades and services for home improvements, such as interior decoration and mortgages.
Some 140,000 households have benefited from the Tenants Purchase Scheme, which was halted in 2006. Today, there are still more than 830,000 households living in public rental housing, according to Our Hong Kong Foundation research. Many of them would no doubt welcome a return of the scheme.
In addition to benefiting tenants, the scheme would give our financially stressed government more resources to help the community, boost the economy and provide new business opportunities.
As the city seeks solutions amid the devastating pandemic and other challenges, the multiple benefits of relaunching the Tenants Purchase Scheme offer a ray of hope.
Amy Liu Mei Heung is the managing editor at Our Hong Kong Foundation