In his annual policy address at the Legislative Council on October 16, 2024, Hong Kong Chief Executive John Lee Ka-chiu announced initiatives aimed at tackling the city’s housing affordability crisis, which he described as a “significant public concern.”
A major policy outlined in his speech includes measures to facilitate access to subsidized housing for residents under 40, addressing growing worries about their challenges in entering the densely populated housing market. The Hong Kong Housing Authority plans to allocate an additional ballot number for applicants below 40 years old, thereby improving their chances in the subsidized Home Ownership Scheme.
Additionally, the government intends to raise the quota for the White Form Secondary Market Scheme by 1,500, exclusively for applicants under 40. This scheme allows the trading of secondhand subsidized flats without a land premium. In 2023, only 4,500 households qualified for the scheme.
The announcement is set against a backdrop of reports and concerns that young residents may forgo promotions and salary increases to remain eligible for public housing instead of venturing into the private housing market. To further aid young people’s housing affordability, the government will continue the Youth Hostel Scheme, which involves subsidizing non-governmental organizations to rent hotels and guesthouses for youth hostel purposes.
In 2024, Demographia ranked Hong Kong as the least affordable city for housing, a title it has held for over a decade. The city’s over 100,000 small subdivided flats, often criticized for health and safety issues, underscore this affordability crisis. Lee announced plans to introduce a new renting system for such flats, converting “substandard” units into “Basic Housing Units” with essential features like windows, toilets, and sizes exceeding 86 square feet.
Furthermore, Lee stated that the government anticipates completing approximately 9,500 new public housing units next year, with an aim to reach about 30,000 units by 2027-2028. The current waiting time for a public housing unit in Hong Kong is 5.5 years, which Lee projects could be reduced to 4.5 years by 2026-2027.
This policy address marks Lee’s third since starting his five-year term, with a greater emphasis on enhancing residents’ quality of life and bolstering the economy compared to previous addresses that focused more on national security and post-pandemic recovery. Lee assumed office following a period of civil unrest exacerbated by the Covid-19 pandemic.
