Concrete Analysis | We need to get creative to fix Hong Kong’s housing crisis
Whether it’s by embracing prefabricated homes or converting car parks into housing, it’s time to tackle the crisis behind the city’s exorbitant property prices, writes John Batten of Arcadis
For many people in Hong Kong, home is not where the heart is. Whether they are stuck on social-housing waiting lists for years, living in potentially dangerous subdivided units, stumping up for a “nano” apartment, or desperately scrimping and saving for decades to get on the first rung of the housing ladder, redesigning urban living is vital for Hong Kong’s future.
Limited land supply and affordability leading to sky-high prices remains at the core of Hong Kong’s housing challenges. While many cities suffer from housing issues, Hong Kong’s crisis stems from a unique blend of factors.
The growing population and land scarcity continue to add to the imbalance in supply and demand. Hong Kong’s private-housing prices have been on the rise for the last 27 months, so apartments are increasingly unaffordable and inaccessible. Some people stay in public housing even when they can afford the private sector, prolonging the wait for others. Eligible families in Hong Kong now spend an average of more than five years waiting for suitable housing.
Experts have mooted many creative solutions, ranging from homes in repurposed water pipes, container homes, co-living/working spaces and the implementation of a vacancy tax. Vancouver has implemented a similar tax, which is expected to bring in C$30 million (US$22.77 million). The response to whether Hong Kong – a city that prides itself on being a free economy – should go down that route has been decidedly lukewarm.
Instead, the government needs to overcome its resistance to amending ordinances, and embrace businesses that are based on the sharing economy. Failing to do so is holding Hong Kong back from realising the benefits of this emerging business model in which unoccupied accommodation can be used as an innovative housing option. The government should also look again at subdivided units. Over 200,000 people live in this type of housing where living conditions are generally less than satisfactory. Yet, there is no legal definition of a subdivided unit, making it difficult for the authorities to impose regulations to ensure residents’ health and safety.