Editorial | Rent rise for Hong Kong public housing reasonable if system is to be viable
- The Hong Kong Housing Authority has to maintain healthy finances to fulfil its mission, while striking a balance with economic circumstances and public affordability
A regular rent review mechanism has given the Hong Kong Housing Authority a steady source of revenue to run its costly but essential programmes for the needy.
An accompanying ceiling of a 10 per cent rise under the law also ensures the prevailing economic situation and public affordability are taken into account. The system has been serving the city well.
That does not mean there are no disputes, though, especially in times of a weak economy. The move to raise rents up to the statutory cap has raised questions about whether the Housing Authority has been too aggressive.
The rents are currently adjusted every two years according to tenants’ income, with the previous one in 2022 kept at only 1.17 per cent, or a range from HK$5 (64 US cents) to HK$66 more per month. Coming at the height of the Covid-19 pandemic, the increases were also waived for 12 months.
With the economy picking up and the government’s budget deficits running deep, the steeper rent adjustment is to be expected. Indeed, officials warned of the increases earlier this year, citing a looming multibillion-dollar shortfall in rental operation in four years’ time if no adjustments were made.
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