Hong Kong Chief Executive John Lee Ka-chiu delivered his annual policy address at the Legislative Council on October 16, 2024. In his speech, Lee outlined measures to tackle the city’s housing affordability crisis, describing it as a significant public concern. One of the main initiatives introduced is aimed at facilitating easier access to subsidized housing for citizens under the age of 40, addressing growing worries about their ability to enter the city’s densely competitive housing market.
As part of the plan, the Hong Kong Housing Authority will grant an additional ballot number to applicants below the age of 40, thereby enhancing their likelihood of being selected for subsidized Home Ownership Scheme flats. Furthermore, the government will increase the quota for the “White Form Secondary Market Scheme” by 1,500 units, all reserved for applicants under 40. The scheme, which allows the buying and selling of secondhand subsidized flats without a land premium, had previously made only 4,500 households eligible in 2023.
This development arises amid reports and concerns that young residents in Hong Kong may opt out of promotions and pay increases to remain eligible for public housing, rather than engaging with the private housing market. To further support youth housing affordability, the government intends to continue the Youth Hostel Scheme, which subsidizes non-governmental organizations in renting hotels and guesthouses as youth hostels.
According to the 2024 Demographia International Housing Affordability report, Hong Kong has been the least affordable housing market for over a decade. The city’s more than 100,000 “shoe-box sized” subdivided flats have been associated with various health and safety issues and often highlight this affordability crisis. Lee announced that a new system for renting subdivided flats will be launched, whereby “substandard” units will be upgraded to “Basic Housing Units” meeting new standards, including the addition of windows, toilets, and a minimum size requirement of over 86 square feet.
Lee also revealed that the government anticipates completing approximately 9,500 new public housing units next year, with a target of around 30,000 units by 2027-2028. The current wait for a public housing unit in Hong Kong is 5.5 years; however, Lee projected this could be reduced to 4.5 years by 2026-2027.
This policy address marked Lee’s third in his five-year term, featuring a stronger emphasis on enhancing residents’ quality of life and bolstering the city’s economy compared to previous addresses. Earlier addresses had focused more on national security issues and post-pandemic recovery strategies, following Lee’s succession to leadership after a period of civil unrest and the onset of the COVID-19 pandemic.
