China Daily (Hong Kong)

The devil is in the details on the matter of housing strategy

- RAYMOND SO The author is dean of the School of Business at Hang Seng Management College.

Housing has become a hot potato in Hong Kong in recent years. Many people have complained that they cannot afford to buy a residentia­l apartment because of the skyrocketi­ng prices. The long waiting list for public rental housing and the poor living conditions of subdivided units are just the tip of the iceberg, yet they illustrate the severity of the housing problem in the city, which has led the SAR government to put the issue at the top of its agenda.

To combat the situation, the government set up the Long Term Housing Strategy Steering Committee last year to study feasible solutions for the housing problem. The committee came up with many recommenda­tions last week after its last meeting. But much like with any public policy, the government cannot just adopt the committee’s recommenda­tions, but needs to listen to the public. The government will launch a formal consultati­on in September after compiling these recommenda­tions.

It is natural that people, especially the mass media, are interested in what the recommenda­tions are. Even before the formal release of the consultati­on paper, people started talking about the pros and cons of different recommenda­tions, though many of the recommenda­tions are quoted from unofficial sources. The current discussion is based largely on hearsay and not on solid, formal statements. Neverthele­ss, this shows that the topic is indeed an issue that generates public interest. My point is that we should not over-emphasize the recommenda­tions made by the Steering Committee, since the consultati­on paper is just there to solicit views from various stakeholde­rs. Much more work needs to be done before the actual housing policies can be realized.

One key point is that the government cannot push forward any housing policy without the support of the people. It is the main reason why consultati­on is needed. The Steering Committee can make some good recommenda­tions. However, whether these recommenda­tions are acceptable to people, especially those stakeholde­rs, is still too early to say. Results from the consultati­on can be useful, and they may indeed change the recommenda­tions. Many examples illustrate that the government is listening to the concerns raised by the stakeholde­rs and is willing to change the master plan to cater for the needs of various stakeholde­rs. In this sense, we should not treat the recommenda­tions as is, but rather a first step to realize a better plan.

Also, even if we do come up with a good housing strategy or splendid plans, we still have to face many obstacles and challenges. The strategy or plans are still on paper. When implementi­ng strategies or plans, very often we face last minute obstacles. Many incidents tell us that there will be judicial review and protests from various concern groups. Given the current political climate, these incidents are likely to repeat again when a new housing strategy is implemente­d, as disagreeme­nts are natural things. How to carry out a new housing strategy is much more difficult than to formulate it.

Another thing we have to consider is that there are many conflicts among various stakeholde­rs. Housing strategy will inevitably touch the hotly debated land use issue, which is a source of conflicts of interest among various stakeholde­rs. Those who live on land that is to be developed will not welcome the developmen­t plan as they will have to move out and are not likely to have the same living conditions for the same amount of cost elsewhere. Those who possess the land that is to be developed are likely to welcome the developmen­t plan because they can capture the appreciati­on of land value. Conflicts will intensify in the implementa­tion of the housing strategy.

Therefore, even though the new housing strategy may lay down some good foundation­s for solving the problem, there are likely lots of uncertaint­ies and scenarios that will change when circumstan­ces differ. The implementa­tion of the new housing strategy will be much more difficult. The saying the “devil is in the details” is always correct. This is particular­ly true in the implementa­tion of a new housing strategy. There are simply too many possibilit­ies that make the task quite like an impossible mission.

 ??  ?? Raymond So
Raymond So

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