Hong Kong Light Public Housing Scheme Current Challenges in Public Housing
The issue is compounded by a government initiative to eliminate subpar subdivided flats, which will increase demand for public housing as displaced tenants seek alternative accommodations.
Based on the 2021 Population Census, approximately 210,000 people live in 108,200 subdivided units. While the government has not officially defined substandard subdivided flats, a proposal by the Hong Kong Community Organizations Association outlines nine criteria, including a minimum living space of 7 square metres for single tenants and 5.5 square metres per person for households with two or more people. If this definition is adopted for the policy, roughly 30% of subdivided flats could be classified as substandard, potentially displacing many residents and increasing public housing demand.
Although the Hong Kong 2030+ Strategy final report identified sufficient land to build 360,000 public housing units, the uneven pace of construction remains a major challenge. Only one-third of the units will be completed in the first five years (2023-2028), while the remaining two-thirds will not be ready until 2028-2033. This slow progress significantly prolongs waiting times.
The Light Public Housing Scheme
The Light Public Housing (LPH) scheme was first introduced in the 2022 Policy Address. It aims to provide short-term public housing supply by utilising temporarily available government and private land. The government plans to construct 30,000 LPH units between 2023 and 2028, prioritising applicants who have waited for over three years and tenants being forced out of their subdivided flats. The first phase of 2,100 units is scheduled for completion in 2024-2025, with the remaining units to be completed in phases between 2025 and 2027.
Limitations of the Light Public Housing Scheme
High Cost
The total budget for LPH is around HK$26.4 billion, with an average construction cost of HK$880,000 per unit. This figure is notably higher than the average costs of HK$650,000 for traditional public housing and HK$550,000 for transitional housing. Additionally, LPH’s operational costs are estimated at HK$4.39 billion over five years, averaging HK$3.7 per square foot of units constructed. This is higher than the private residential property management fee average of HK$2.7 per square foot, according to the Consumer Council.
The Secretary for Housing defended the scheme, emphasising that operational costs include security, cleaning, and maintenance of community facilities, which differ from those of traditional public housing or private residences. However, the high costs have raised concerns about the scheme’s cost-effectiveness and whether such significant investment is justified for a temporary measure.
Lack of facilities
Some sites available for building LPH are planned in underdeveloped areas in the northern part of New Territories, where public transportation and infrastructure are inadequate. Residents may face long commuting times and limited access to retail stores, schools, and workplaces. This lack of supporting amenities may lower the quality of life for tenants.
Limited impact
Despite the high cost of LPH, this scheme is only intended as a temporary measure and only addresses a fraction of the 301,000 unit public housing demand projected for the next decade. The cost-effectiveness of this policy still remains unclear and hardly justified.
Bibliography
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https://www.census2021.gov.hk/doc/pub/21c-SDUs.pdf
https://www.bbc.com/zhongwen/trad/chinese-news-69409085
https://www.rfa.org/cantonese/news/htm/hk-house-02072023040848.html
https://www.policyaddress.gov.hk/2022/tc/p60.html
https://www.hb.gov.hk/eng/policy/housing/policy/lths/LTHS_Annual_Progress_Report_2024.pdf
https://www.hb.gov.hk/eng/policy/housing/policy/lths/index.html
https://www.info.gov.hk/gia/general/202410/28/P2024102800287.htm?fontSize=1