Hong Kong public housing provider predicts HK$4 billion deficit for rental operations in 4 years’ time, with officials eyeing rent increase

Billy Mak, chairman of the Housing Authority’s finance committee, also says review of rents to be conducted in third quarter of year

Authority predicts need for financial support to complete later stages of government’s 10-year plan to boost public housing supply

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Hong Kong’s main public housing provider has recorded a small surplus of HK$174 million in 2023-24 for rental operations, even as it predicts a future deficit. Photo: Nora Tam

Published: 10:42pm, 8 Jan 2024Updated: 7:10am, 9 Jan 2024

Hong Kong’s main public housing provider has predicted it will rack up a deficit of more than HK$4 billion (US$512 million) in four years’ time for its rental operations arm, and officials have said they will consider raising rents as tenants’ incomes have stabilised.

Billy Mak Sui-choi, chairman of the Housing Authority’s finance committee, on Monday said a review of rents would be conducted in the third quarter of the year.

“As society returns to normality and residents’ incomes stabilise, I think it is time to review public housing rents,” he said. “But it is too early to say the extent of the increase. The adjustment will be made based on changes in residents’ incomes.”

The authority’s latest budget showed it was expected to record a deficit of HK$1.17 billion for its public housing operations in the 2024-25 financial year if no rental adjustments were made, before ballooning to HK$4.28 billion in 2027-28.

A housing official says a review of rents is on the cards. Photo: Xiaomei Chen

This was despite the public housing provider recording a small surplus of HK$174 million in 2023-24 because of lower recurring expenditure on daily maintenance and improvement works, cleaning and security services.