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Opinion | Heyday of nano flats in Hong Kong may be ending, but more housing progress is needed
- With mortgage rules relaxed and more subsidised flats released, demand for small private flats has fallen, causing developers to start switching to mid-sized housing
- But for all Hongkongers to be able to ‘live bigger’, the land and housing shortage must be tackled at the root
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As “Asia’s World City”, Hong Kong is renowned for its high efficiency, which stems in part from its high-density development. But this also comes with shortcomings – epitomised by the city’s shoebox housing units and a residential property market that is the least affordable in the world.
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According to the 2021 population census, Hong Kong’s per capita living space is just 172 sq ft, much smaller than Tokyo’s 210 sq ft and Singapore’s 270 sq ft. The difference is glaring when we compare it with Shenzhen’s 300 sq ft – nearly double that of ours.
Hong Kong’s high housing prices have had a significant impact on market behaviour in recent years, most prominently the building of nano flats, some measuring only 128 sq ft – the tiniest flats earned themselves the nickname “king-size bed” units.
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Buyers snapped them up despite having to spend millions of Hong Kong dollars on a home that is often smaller than a typical car park space (130 sq ft). Ultimately, this is the consequence of the severe land and housing shortages in Hong Kong and the resulting demand-supply imbalances.
But there are encouraging signs. The government is clearly setting out to improve living space, and market dynamics are shifting. It seems first-time homeowners are no longer scrambling for any unit that requires a smaller lump sum initial payment – no matter how small the flat – just to get a foot on the property ladder.
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