AFFORDABLE HOUSING REMAINS AN ISSUE
Tenants living in non-compliant subdivided units may have to pay more to continue living in a Basic Housing Unit. Landlords would have to reduce the number of subdivided units within a property, which will drive rental prices up.
It is unclear whether the government can provide transitional and affordable housing for those who are forced to leave. Those who are neither eligible for public housing nor able to find an affordable home might have to resort to the illegal rental market.
Advocacy groups expressed concern over finding new accommodation for tenants. ComHome Social Realty is a social real estate agency aimed at matching low-income households with affordable housing.
Since the group’s founding in 2023, among some 300 participants, only 17 managed to find their match. This low success rate is a result of the sheer discrepancy between participants’ financial ability and home rental prices.
In July, the median rent for subdivided units in Hong Kong Island was HK$7,000 (US$900) per month, while that in Kowloon reached HK$5,300 per month.
Statistics in 2021 indicate that the median monthly household income of tenants of subdivided units is HK$15,310. Assuming their incomes rose alongside average wage growth from 2021 to 2024, this figure is currently HK$16,160. That means that a sizeable one-third to half of their income goes into the rent for a subdivided unit.
The 2024 policy address shows the government’s resolution to solve Hong Kong’s housing issues. The introduction of the Basic Housing Units is a fresh start, and Hong Kong is on its way to build more houses.
But with the extreme imbalance between the demand for housing in central areas and the chronic shortage of affordable options, housing for Hong Kong’s most vulnerable individuals will continue to be an issue in the foreseeable future.
John Hanzhang Ye is a PhD candidate in the History of Science, Technology and Medicine programme at the University of Minnesota.
Source: CNA
