In the heart of one of the world's most affluent cities lies a stark contrast: nearly 250,000 residents confined to living spaces no larger than a parking spot. Let's delve into the depths of Hong Kong's housing crisis, uncovering the human stories behind the statistics and examining the systemic issues perpetuating this urban plight.
At first glance, Hong Kong's skyline paints a picture of prosperity. Yet beneath the towering skyscrapers, approximately 250,000 people reside in subdivided flats—cramped units carved out of old tenement buildings. These "coffin homes" or "cage homes," some as small as 60 square feet (5.6 square meters), are rented at disproportionately high prices, often lacking basic amenities like separate kitchens or bathrooms. An official survey from 2021 revealed that there are 108,200 subdivided flats in the city. About 20% of these units fail to meet the proposed minimum size requirement of 86 square feet (8 square meters), while 10% lack essential standards such as adequate ventilation, raising serious health and safety concerns.
In an effort to address these inadequacies, the Hong Kong government, led by Chief Executive John Lee, plans to introduce new regulations. The proposed standards mandate:
A minimum living space of 86 square feet (8 square meters) per unit.
A ceiling height of at least 2 meters (6.6 feet), with beams no lower than 2.3 meters (7.5 feet).
At least one openable window for ventilation.
Separate kitchens and bathrooms for each unit.
Existing subdivided flats will be redesignated as "Basic Housing Units." Landlords of these units will receive a grace period to bring them up to standard, while new subdivided flats must comply immediately without a grace period. Notably, "coffin homes" are excluded from these regulations and will continue under the 1994 Bedspace Apartments Ordinance.
While the government's initiative is a step toward better housing standards, its implementation raises concerns. Approximately 30% of existing subdivided flats—around 33,000 units—do not meet the new criteria. Enforcing these regulations without clear resettlement plans places thousands at risk of eviction.
Hong Kong's housing crisis cannot be isolated from its broader economic context:
Sluggish Economy: Slower growth in China, rising U.S. interest rates, and reduced tourism have strained Hong Kong's economy.
Real Estate Downturn: Property prices have dropped over 20% since 2022, yet remain unaffordable for most. The average 430-square-foot (40 square meters) apartment costs around HK$5 million (approximately US$640,000).
Developer Struggles: Major developers like report significant losses, reflecting wider sector challenges and impacting market confidence.
Despite the weakened housing market and an oversupply of units, prices remain out of reach for average citizens. Potential homebuyers are cautious, often waiting for more favorable mortgage rates or lower prices before committing.
To combat the housing shortage, the government has set a total housing supply target of 440,000 units for the next 10 years. The public/private split will be maintained at 70:30, with 308,000 public housing units planned. Additionally, the ratio of public rental housing to subsidized sale flats will shift from 70:30 to 60:40, reflecting a strategic move to promote homeownership. Recently, 7,132 new subsidized flats in five developments have been made available, priced between HK$1.43 million and HK$4.67 million (approximately US$183,000 to US$598,000). Special provisions are in place for young families and single applicants, aiming to improve accessibility to affordable housing.
Addressing the subdivided flat issue is projected to take about four years. Resettlement will occur in batches, considering market supply and public housing availability. The government plans to provide short-term housing for eligible tenants who have not yet applied for public housing, attempting to minimize displacement impacts.
While the government's efforts to enforce minimum housing standards are commendable, they must be balanced with measures to protect vulnerable residents. Housing advocates suggest:
Clear Resettlement Plans: Before enforcing evictions, provide affordable alternatives for those displaced.
Rent Control Measures: Prevent landlords from hiking rents in response to new regulations.
Accelerated Public Housing Development: Expedite the construction of affordable housing units to meet the pressing demand.
Regulations without support systems risk harming the very people they aim to help. We need a holistic approach that includes financial assistance and transitional housing options.
Over a quarter of Hong Kong's 7.5 million people live in subsidized housing, yet demand far outpaces supply, with waiting times extending nearly six years. The city's reliance on land sales for revenue faces challenges due to declining demand, complicating efforts to expand public housing provisions.The government's "Cherish Public Housing Resources Award Scheme" incentivizes reporting misuse of public housing. While intended to ensure that subsidized units reach those in need, some argue it diverts attention from systemic issues and may lead to unfair targeting.
Over 90% of children living in Hong Kong’s cramped subdivided flats display spinal issues, attributed to doing homework on makeshift surfaces like beds and chairs due to the lack of proper desks. Conducted by the Society for Community Organisation (SoCO), a survey of 503 children from low-income families found that many of these children fail spinal health tests, with 44.4% having uneven shoulders and 5.6% suspected of scoliosis. Over 80% live in spaces averaging 140 sq ft. SoCO calls on the government to prioritize public housing for families with children and extend extra points in the housing system for those aged 12 or younger. Current services, such as schools allowing after-hours study and community living spaces, are deemed insufficient to meet the needs of the estimated 50,000 children in such conditions.
Hong Kong stands at a crossroads. The housing crisis is a complex web of economic, social, and political factors. Addressing it requires not only stringent regulations but also empathy and comprehensive support for those affected. The government's long-term housing strategies and immediate actions must align to provide sustainable solutions.
