Real estate demon pushes critical livelihood issues into shadows

At the time when public attention is focused on escalating property prices, many other pressing social and economic issues have been left on the back burner. This is unfortunate because some of them are having as big an impact on people’s lives and welfare as affordable homes.

Housing is, of course, of great importance to every family because it is now seen not only as a place to live but also a reliable store of wealth. That’s why people are not satisfied by just renting a home. They want to buy one.

Understandably, the government has made housing its top priority. Its approach to solving the problem is to increase supply by creating more land for development. The effectiveness of the government housing policy has been dissected and studied by political analysts, economists and social activists in minute detail.

Some people have criticized the policy for being too simplistic while others charge that it benefits the major developers more than potential homebuyers. But nobody has proposed a fresh idea that sounds promising.

While the great housing debate rages on, other issues of social and economic consequence have been brushed aside.

Take air pollution for example. Not too long ago, the local media raised the alarm that worsening air pollution in the urban districts was posing a serious threat not only to public health, which is obvious, but also to Hong Kong’s economic wellbeing. There were numerous reports of an exodus of local and expatriate talents in finance and other professions because of growing concern about the health of their families.

The government responded by introducing a host of measures to combat the problem. They included increased subsidies for clean energy and tighter regulations such as requiring drivers to switch off the engines of stationary cars.

But the public outcry against this serious health threat has died down not because the air quality has improved but rather because it is overshadowed by the rising cost of housing. The popular press has largely ignored the issue and the government has relegated it to the low end of its priority list although there is much left to be done.

Without giving a reason, the government has cut the subsidies on electric cars and made no mention of the plan to increase the number of charging stations. Such actions are contrary to the common wisdom that promoting the use of electric cars is crucial to fighting road-side air pollution, which is caused mainly by vehicular exhaust.

Meanwhile, some European cities are beginning to increase the use of electric-powered ferries to cut down on marine pollution. In Hong Kong, the cross-harbor ferries and those going to the various outlying islands are still powered by pollutant-belching diesel engines.

There is a substantial cost advantage in switching to all electric or hybrid power from diesel. Experience in Norway has shown that the switch has reduced energy costs more than 60 percent.

The other sticking point that has faded from public view is the plight of the urban poor. Despite the increase in government subsidies, many of the elderly poor still live in squalid conditions. The horror of the “caged” homes has continued to make Hong Kong people feel guilty.

Young people of Hong Kong should take their minds off property and concentrate on doing something more meaningful in life, like learning a new skill.

If you care to look, you can still see frail old ladies pushing cartloads of cardboard up some slopes in hilly Western district.

But nobody seems to care anymore as young families are obsessed with saving enough for the mortgage down-payment for their first homes. Homeowners are keeping themselves busy trying to figure out the best way to finance the purchase of their second or third homes for investment purpose.

Hong Kong is possessed by the housing demon. Instead of trying to exorcise the demon, politicians, economists and the popular press are preaching the omnipotence of the property god whose value can only go up and up.

This, of course, cannot be true. Take the advice from, of all people, a senior executive of a major property development firm. “Young people of Hong Kong should take their minds off property and concentrate on doing something more meaningful in life, like learning a new skill,” he said.

The author is a veteran current affairs commentator.