Hong Kong Chief Executive John Li Ka-chiu delivers his annual political speech at the Legislative Council on October 16, 2024 in Hong Kong.
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Hong Kong Chief Executive John Lee announced steps aimed at tackling the city's housing affordability crisis, describing it as an “issue of great public concern” in his annual policy address on Wednesday.
One of the key policies announced in his speech will look to provide an easier path to subsidized housing for citizens under the age of 40 amid growing concerns about their ability to get a foothold in the city's crowded housing market.
Under the plan, the Hong Kong Housing Authority will allocate an additional ballot number to applicants under the age of 40 – a move that will increase their chances of being selected for subsidized apartments in the city's home ownership scheme.
The government will also increase its quota in the “white-papered secondary market programme” – under which subsidized apartments can be bought and sold without a land premium – by 1,500, all reserved for applicants under 40. Only 4,500 families were eligible for apartments under the scheme in 2023.
The move comes amid reports and concerns that Hong Kong's youth in the city may reject promotions and pay increases in order to remain eligible for public housing rather than enter the private market.
To further address housing affordability for young people, the government will continue the Youth Hostel Programme, which supports NGOs renting out hotels and guesthouses for use as youth hostels.
Demographia's 2024 International Housing Affordability Report has ranked the city as the least expensive place to find a home for more than a decade. The city's more than 100,000 “shoebox-sized” subdivided apartments, which have been linked to health and safety issues, are often used to illustrate this fact.
Lee said Wednesday that the city will launch a new system for subdivided apartment leasing, with “substandard” units converted into “basic housing units” that meet new requirements such as windows, restrooms and a size larger than 86 square feet.
He also said the government expects to complete about 9,500 new public housing units next year, moving toward a goal of completing about 30,000 units by 2027-2028.
The current waiting time for a public housing unit in Hong Kong is 5.5 years. According to Li, the waiting time could be shortened to 4.5 years in 2026-2027.
His policy speech on Wednesday was Lee's third during his five-year term, and he focused more on improving residents' livelihoods and boosting the city's economy than before.
Previous headlines were more focused on national security issues and post-pandemic recovery measures, with Lee taking control of the city after a period of civil unrest that led to the COVID-19 pandemic.
