A housing profile of Hong Kong. Focusing on current supply issues and the government’s approach to finding a solution, the presentation exhibits some of the best and worst examples of living conditions in one of the most densely populated countries in the world.

2. China
HONG kong
“One China, Two Systems”

3. Contents
1.
2.
3.
4.
5.
Housing Supply Issues
The Governments Approach
Examples of Housing – Good vs Bad
Summary
Questions and Answers
10 mins

4. 1. HOUSING SUPPLY Issues

5. 1068KM2
6.9M
/
=
5385
Persons
2
per km
area
Population
HIGH Population DENSITY
Data Source: Yuen and Yeh (2011)

6. 70%
of
75%
of
Hong Kong
is countryside
Hong Kong
is HILLS and Slopes
HIGH Population DENSITY
Source: Agriculture, Fisheries and Culture Department (2014)

7. HIGH Population DENSITY
Source: Agriculture, Fisheries and Culture Department (2014)

8. 1.
In Hong Kong land is
government owned.
2.
It is subdivided before being
leased to private developers.
3.
One of the main sources of
income to the government is
the sale of leases
through auction and tender.
4.
It represents up to 30% of
government income.
Government Controlled LAND
Data Source: Nissim (2011)

9. THE RESULT:
Increased LAND prices

10. Country
12-month
% Change
6-month %
Change
Global House Price Index
2012 to 2013
25
Change as %
Rank
23.6
20
15
10
5
4.3
0
World Average
Hong Kong
High House Prices
Data Source: Knight Frank (2013)

11. GDP PER CAPITA
$50,000
$40,000
$30,000
$20,000
$10,000
$0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
High House Prices
Data Source: Google Public Database (2014); World Bank

12. Data Source: Chi-Fai (2012), South China Morning Post
Income Inequality
HONG KONG
Total
Income
HONG
KONG AS
10
PEOPLE
Poorest
Richest

13. $80,000
GDP PER CAPITA
Vs
National average salary
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
GDP PER CAPITA
National average salary
Income Inequality
Data Source: United Nations (2013)

14. THE RESULT:
Price to income ratio
Affordability Index
U.k. Average 7.74
U.K Average 1.73
27.06 00.57
Lack of Affordability
Data Source: Numbeo, 2014

15. 2. GOVERNMENTS APPROACH

16. “the community endorses the recommendation that
the Government should adopt a supply-led
strategy, continuing to increase housing supply
and enhance the role of public housing.”
2014 Policy Address, Para 141
Increasing Supply of Housing

17. Population by housing type
(Currently)
29.7%
Public Rental
Subsidised Home Ownership
52.8%
Private Permanent
17%
Temporary
Increasing Supply of Housing
Data Source: Information Services Department (2013)

18. “The new target is to provide a total of 470 000 units
in the coming ten years, with
public housing accounting for 60%.
To meet the new housing supply target, the
Government aims to provide an average of about
20,000 PRH units and about 8,000 HOS units per
year”
2014 Policy Address, Para 142
Def.
PRH: Public Rental Housing
HOS: Subsidised Home Ownership Housing
Focusing on Public Housing

19. “Government aim to maintain the current
waiting time for public housing (avg. 3 years)"
Applicants on Waiting List
250,000
228,400
200,000
189,500
150,000
100,000
152,500
114,400
50,000
0
1
2009
2
2011
3
2012
4
2014
Focusing on Public Housing
Data Source: South China Morning Post

20. Increasing Permitted Plot Ratios
Except for the north of Hong Kong Island and
Kowloon Peninsula, which are more densely
populated, the Government considers it feasible
to generally increase the maximum domestic
plot ratio currently permitted for the other
“density zones” in the territory by around 20% as
appropriate.
2014 Policy Address, Para 122
Def.
Domestic Plot ratio: A measure of site-to-building levels
(Chapter 2, Hong Kong Planning Standards and Guidelines)
Densification

21. Increasing Permitted Plot Ratios
Plot Ratio: 1.5
Tai Wo Ping
Plot Ratio: 3
Kowloon Tong
Plot Ratio: 5
Hung Hom
Plot Ratio: 6
Quarry Bay
Plot Ratio: 8
Ma On Shan
Sai Wan
Aberdeen Centre
Densification
Source: City Planning Consultants Ltd (2005)

22. Rezoning and Infill Development
The Plan Departments is conducting a new round of
Area Assessments of Industrial Land in the
territory, which focuses on the industrial and
commercial sectors’ demand for land and space,
and will rezone for residential use the industrial
land near residential areas where industrial
activities have greatly reduced.
2014 Policy Address, Para 134
Densification

23. Rezoning and Infill Development
The Government has identified about 80 additional
Green Belt sites and Government, Institution or
Community (GIC) sites in various districts with a total
area of over 150 hectares with the potential to be
rezoned for residential use.
2014 Policy Address, Para 120
Increasing Supply of Land

24. Tax Introduced
Properties worth
below HK $2 million
now incur
stamp duty of 1.5%
Tax Doubled
Properties worth
above HK $2 million
now incur
stamp duty of 8.5%
Reducing Market Demand

25. 3. Examples of Housing
The Good
The Bad

26. Subdivided Housing

27. The Numbers
Number of people
living in
subdivided flats
Number of
subdivided flats
Number of
applicants on
waiting list of for
public housing
171,300
66,900
228,400
Subdivided Housing
Data Source: Wilson Housing Authority

28. Exit to
staircase
blocked
Nearest exit is to
far away from
Apartment 1
Internal walls are
unlikely to be
fireproofed
Corridor is too
narrow
Bathroom is
installed on the
balcony
Modified Apartment
Original Apartment
Staircase
Apartment 1
Kitchen
Bathroom
Bathroom
Apartment 2
Bathroom
Kitchen
Living Area
Apartment 3
Entrance
Bathroom
Kitchen
Bathroom
Apartment 4
Balcony
Subdivided Housing

29. Average Housing
Unit Size
Subdivided
Housing
20m2
Hong Kong 45
China 60
United Kingdom 76
Japan 95
Canada 181
USA 201
Subdivided Housing
Data Source: Wilson (2013)

30. Subdivided Housing

31. Subdivided Housing

32. Subdivided Housing

33. Caged Homes

34.  “Caged-homes” are categorised as “Bed-space
Apartments” by the Hong Kong Government.
 The term “Bed-space Apartment” refers to a house
that contains 12 or more people who rent individual
bed spaces.
 It is legal to run Bed-space Apartments, but property
owners must obtain a special license from the
Bedspace Apartment Ordinance.
Caged Homes

35. Caged Homes

36. Caged Homes

37. Caged Homes

38. Caged Homes

39. Public Housing

40. Sau Mau Ping (I) Estate
Wah Fu Estate
Ma Hang Estate
Cheung On Estate
Tak Tin Estate
Wo Ming Court
Chung Ming Court
Housing Department (2014)
Tsz Wan Shan Estate
Public Housing
Lei Cheng UK Estate

41. Mark V
Twin Tower
Harmony Rural
Slab
Trident
Concord
New Cruciform
Housing Department (2014)
Mark III
Public Housing
Mark I

42. 10.6
to
52.2
33.1
to
39.9
17.0
to
52.5
11.7
to
53.1
11.8
to
55.6
39.0
to
60.0
37.0
to
59.0
Flat Size
(m2)
Housing Department (2014)
23.1
to
46.5
Public Housing
21.5
to
65.1

43. Community Space
Playground
Arts and
Green Space
Access
Secured Entrance
Recreational
Space
Public Housing
Data Source: Housing Authority. Google Street view.

44. Private Housing

45. Source: Centadata (2014). Yuen Property Agency (2014).
Private Housing
Saleable area
177
Square Metres (m2)
Price to buy: £1.89 Million (UK Pounds)
Price to rent: Unknown
Description: 3 x bedroom
Type: Semi-detached house
Location: Semi-urban
Facilities: 24-Hour Security, Clubhouse,
Sauna and Jacuzzi, Swimming pool, Golf
range, Child playground and pool.

46. Source: Centadata (2014). Richland Property (2014).
Private Housing
Saleable area
122
Square Metres (m2)
Price to buy: £777,000 (UK Pounds)
Price to rent: £3,700 (UK Pounds)
Description: 2 x bedroom
Type: Low rise apartment
Location: Semi-urban
Facilities: 24-Hour Security, Equipped
kitchen.

47. Source: Centadata (2014). Squarefoot HK (2014).
Private Housing
Saleable area
125
Square Metres (m2)
Price to buy: £1.5 Million (UK Pounds)
Price to rent: £2,929 (UK Pounds)
Description: 3 x bedrooms
Type: High-rise apartment
Location: Urban
Facilities: 24-Hour Security, Clubhouse,
Gym, Swimming pool. Equipped kitchen.

48. Ranking (In My Opinion)
1.
Average
Earner
Pros: Affordability. Amenities. Security.
Quality of life.
Cons: Affordability. Property size.
2.
Pros: Affordability. Amenities. Security.
Cons: Safety issues. Lack of space. Social
stigma. Limited supply. Eligibility.
3.
Pros: Affordability. No waiting time.
Cons: Safety issues. Lack of space. Hygiene and
sanitation standards. Lack of facilities.
Inadequate ventilation and associated health
problems.
4.
Pros: Ability to socialise. Affordability.
Cons: Security issues. Lack of space. Hygiene
and sanitation standards. Male dominated.
Extremely low quality of life. Increased risk of
mental illness and other health issues. Lack of
facilities. No privacy.

49. Summary
Housing Issues:




Hong Kong has a limited amount of land.
Purchase of land has a high administration costs.
Houses prices are high because of a large amount of foreign
investors (from mainland China and beyond)
Housing is not affordable to the local population.
Government Approach:
 Increasing housing stock.
 Increasing public housing to 60% to meet current demand (3 years
and rising) and to address affordability issues.
 Densification through rezoning, infill development, increasing
plot ratios and greenfield development (where permitted).
 Cool the private housing market by reducing the demand from
foreign investors (through increasing costs and tax)

52. Yuen, B., Yeh, A. (2011) High-Rise Living in Asian Cities.
Springer
Agriculture, Fisheries and Culture Department. (2014)
Hong Kong the Facts: Country Parks and Conservation
[Online] Available at:
http://www.afcd.gov.hk/english/country/cou_lea/the_facts.
html (Accessed 27 February 2014)
United Nations (2013) Human Development Report
[Online] Available at:
http://hdr.undp.org/en/media/HDR_2013_EN_complete.pd
f (Accessed: 30 February 2014)
Numbeo (2014) Property Price Index by Country [Online]
Available at: http://www.numbeo.com/propertyinvestment/rankings_by_country.jsp (Accessed: 02 March
2014)
Knight Frank. (2013) Residential Research – Global House
Price Index [Online] Available at:
http://resources.knightfrank.com/getnewsresource.ashx?i
d=c802b446-9d21-49ec-b338-0b06ec826d98&type=1
(Accessed 30 February 2014)
Information Services Department (2013) Population – The
Facts [Online] Available at:
http://www.gov.hk/en/about/abouthk/factsheets/docs/pop
ulation.pdf (Accessed: 02 March 2014)
World Bank (2014) Public Data – GDP Per Capita 1960 to
2012. [Online] Available at:
https://www.google.co.uk/publicdata/
http://online.wsj.com/news/articles/SB10001424052702303
661904576452982242744572
Chi-fai, South China Morning Post (2012) The Good, The
Bad and The Dirty. [Online] Available at:
http://www.scmp.com/article/1005287/good-bad-and-dirty
(Accessed: 30 February 2014)
South China Morning Post (2014) More Young People
Drawn to Public Rental Housing [Online] Available at:
http://www.scmp.com/news/hongkong/article/1395251/more-young-people-drawn-publicrental-housing (Accessed: 28 February 2014)
Nissim, R. (2011) Land Administration and Practice in
Hong Kong. 3rd edn. Hong Kong University Press: Hong
Kong.
References