Advertisement
Concrete Analysis | Hong Kong needs bold land-supply initiatives to underpin next growth phase into a smart city
- Housing production is only expected to meet 43 per cent of the volume needed in the next 10 years to improve the living standard in the city
- Provide sufficient sites for data centres and tech parks to facilitate a tech-driven economy to complement reliance on finance, property sectors
Reading Time:3 minutes
Why you can trust SCMP
Sky-high office rents, and the dichotomy that US$100 million houses can coexist alongside tiny nano flats. Such is life in Hong Kong, where real estate prices make it one of the most expensive places in the world to live in and do business.
Advertisement
How did we get there? High business operating expenses and living costs are driven by the dire shortage of land in Hong Kong. The problem is more obvious in the housing market. To address the issue, the government announced in the 2021-22 Budget a plan for more than 18,000 private housing flats annually over the next five years.
Tempering that apparent good news is an unfortunate side effect: at least 20 per cent of this new supply will be nano flats, with a saleable area of less than 215 square feet (20 square metres).
Already, Hong Kong people, on average, have about 150 sq ft of home living space per person, half of that in Singapore. Taking into account expected population growth and the goal of raising average living space to 200 sq ft, we estimate that Hong Kong needs to build 500 million sq ft of residential area in the next 10 years, or about 750,000 of 600-sq ft units. So far, housing production is targeting only 430,000 units in this period, far below what is needed to provide a humble improvement in the living standard.
10:18
‘Home is precious’: Hong Kong ‘McRefugee’ struggles with loneliness after return to ransacked flat
‘Home is precious’: Hong Kong ‘McRefugee’ struggles with loneliness after return to ransacked flat
For transparency, the government should also unveil the total residential floor area at the same time as announcing housing completion targets. It would then be easier for the public to monitor the new housing supply and improve the living environment as a result.
Advertisement
Advertisement