Housing woes — the key is still balancing supply, demand
The Hong Kong government is widely seen to have spared no effort in finding land to build more housing that the public can afford. But, the waiting time for public housing just keeps getting longer and longer.
Not too long ago, the authorities conceded that the waiting time of up to four years was unacceptable. Now, that has been extended to more than five years.
Meanwhile, many more low-income families have no choice, but to put up with the squalid living conditions in the city’s notorious subdivided flats that lack all the modern amenities the average Hong Kong family expects of a home. What’s worse is that these flats are usually located in old apartment blocks with serious health and safety hazards to inhabitants.
But, that’s the only thing more and more families with children can afford. Television footage of children being forced to live in such a substandard environment in wealthy Hong Kong has triggered a tidal wave of public outrage, prompting the government to launch a public debate on its list of proposals to address the acute housing shortage problem.
Most of these proposals are well thought out and focused on creating more land. But, they all involve undertaking projects that would take years, if not decades, to complete.
To be sure, these are projects that need to be done to solve the problem in the long term. The public’s needs for housing are urgent and immediate.
The obvious priority is to resettle the families, especially those with young children. One way to do that is to revise the means test to identify people eligible for public housing by lowering the income ceiling. That would automatically shorten the list of qualified applicants and the waiting time for public housing.
Undoubtedly, such a proposal would stir a storm of controversy. The existing means test was formulated years ago when the waiting time for public housing was never longer than three years. The situation, however, has changed and a new standard has to be in place to rebalance supply and demand.