Everywhere, towers of cement and steel and glass pile, intertwine, racing towards the skies. And in this very jungle, Hong Kong’s problem with housing exposes itself…
PRICING
With an incredibly high property price, Hong Kong has long been seen as the most unaffordable city to live in. Average flat prices reach around 1.25 million USD (around 10 million HKD), approximately twice that of New York’s (ranked 10th) according to a CBRE report. This amount would take a median-income household 20 years of saving.
With an ever-growing population of 7.5 million that has consequently raised the need for housing and exacerbated by its land scarcity, this crisis has only worsened. This high demand and low supply have hoisted up the property value to astronomical heights.
The government is not incentivised to develop more land in Hong Kong for urban use due to the high value of land which is leased to developers. Land sales form a major part of their revenue, making up for its low tax revenue.
LIVING CONDITIONS
Hong Kong’s income disparity has only worsened the housing plight of the lower class. Many of those who are unable to afford such flats or languish on the long waitlists for public rental housing resort to ‘subdivided units’ (SDUs) - where old flats are converted into units, shared by multiple households.
These units are inhumanely cramped, with precious little living space - at 48 square feet per person. Facilities such as toilets and kitchens are shared communal spaces. Rat and tick infections, as well as deadly hazards, like fire accidents, are also common. Lack of rent controls allows landlords to exploit their tenants.
Such are the living conditions of around 280 000 people (Subdivided Flat Study Summary, 2012).
Besides the inherent problems of SDUs, these living conditions are also harmful to their residents’ health. Family conflicts may arise from struggles over space. Improper plumbing can lead to water seepage, which is unhygienic. The sweltering heat within these buildings also poses an oppressing nuisance.
Living space of a ‘coffin home’
There is barely any space to operate, much less to move around in
COVID-19
In a pandemic, the situation can only go downhill. An infection of one household can spread around in a rapid series of transmissions. For example, in January 2021, Jordan was placed on lockdown when 160 cases were found.
THE SOLUTION?
Solving a housing crisis is no simple matter as Hong Kong simply lacks good quality land for housing purposes - this is the result of bad land management. Only 3.7% of Hong Kong land is used as high-density living space.
In order to provide more affordable homes, the main option is land reclamation, creating more space for land use. However, such plans are problematic and unsustainable, with ‘Lantau Tomorrow Vision’ costing US 80 billion dollars for its first phase. This project is thus heavily criticised by the Hong Kong public for its hefty price tag, threat to wildlife, lengthy building process etc.
According to government data, 75% of land is not developed. There are 1500 hectares of brownfield land in the New Territories - this is potentially the key to alleviating this age-old housing burden, but will require the strategic planning of the government.
In the meantime, to deal with the more pressing problem of subdivided flats, the Landlord and Tenant (Consolidation) (Amendment) Bill 2021 has gone into effect recently, aiming to tighten tenancy controls so that landlords do not take advantage of the residents. As such, fluctuating rent will become less of a problem to its already financially struggling residents. The implementation of subsidized housing schemes can also provide affordable housing.
CONCLUSION
Such a problem is nothing new to Hong Kong, a tiny yet metropolitan city - its surpassingly high prices, its income disparity, its affordable ‘alternatives’. There are complex implications to every possible solution, be it economic, political or ecological. For a notoriously wealthy place, such a problem is a shame. It is up to the government to handle the problem more effectively, and to serve the underprivileged, freeing them from their prisons, metaphorical and literal.
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SOURCES
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Writing: Kristen Wong
Editing: Jessica Tang
Graphics: Ran Zhao
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