The Long-Lasting Housing Problems in Hong Kong

Abstract

Global cities are a primary node in the global economic network, and typical global cities such as Hong Kong experience rising housing prices and rent, housing financialization, and deteriorating housing conditions. Among the various metropolitan housing markets across the world, Hong Kong has the least affordable housing. Hong Kong’s housing problems continue to persist despite the government’s actions toward addressing them, an issue that has seen housing and rent prices continuing to soar in recent years. Housing prices have shown an upward trend throughout, except during the Asian financial crisis that began in 1997. From their lowest point to their highest point, housing prices have increased sixfold. Simultaneously, those applying for public rental housing have been forced to wait longer, while families and individuals, especially those with low income, have been forced to live in tiny subdivided houses because of the sharp increases in housing prices and rent. The number of subdivided units has been on the rise, leading the public to raise some concerns on the issue. This paper reviews Hong Kong’s long-standing housing problems while also providing a political-economic explanation to the issue. Some aspects identified as crucial to worsening Hong Kong’s housing situation include the government’s political-economic backgrounds such as the position of the city in the global economy, government ideology, and corporatist features. Some of the key suggestions to addressing the issue include progressively increasing public housing supply, establishing stable living arrangements with low housing prices and rent, providing social housing, setting basic housing standards, and setting housing market regulations.