Housing Affordability & Domestic Violence in Hong Kong

Over the past decades, Hong Kong Government expanded land supply located at New Territories. According to the data provided by C&SD in 2016, in last 16 years, only 37,100 (11.37%) increased of private housing units in Hong Kong Island, and only 118,700 (37.26%) increased in Kowloon, on the contrast, there were 272,800 (57.52%) increase in New Territories. From the above data, it is noted that New Territories, in which those areas far away from the urban area, is planned to have more land supply for private housing units. Other than the factor of housing price, it is the government policy to increase land supply in the location far away from the urban area.

Then, we can see in different reports or researches indicating the shortage of developable land in Hong Kong is one of the crucial reasons that caused the current situation, Indeed, there are abundant vacant lands in Hong Kong that was strangely omitted in the planning of the government. The Government have not make a better use of the vacant lands to dissolve or to lower the severity of the housing problem. The Government can go for the Lands resumption Ordinance in order to reclaim the developable land for solve the housing problem for build the public housing, such as the land of Fanling Golf Club or The Brownfield.

There is currently no clear definition for the term of Brownfield. There is different meaning in different countries. In UK, brownfields usually refer the land was beneficial to redeveloped in the future.

In HK, brownfields usually refer to geoponic land in rural areas specially that areas are comparatively flat and easy to reach. Brownfields are usually pre-industrial land or existing industrial land locate near the urban area.

As the available land in urban areas gradually decreases, brownfields are deserted agricultural land that has been converted to other uses. But it has caused problems such as vacant land and environmental pollution and wasting precious land resources. They actually have great potential in residential development.

In addition, the benefit of develop golf course, the golf course is huge with a total area of 172 hectares can provide a lot of land to solve the demand problem. The processing time and cost of developing a golf course are low, compared to develop a brownfield. There is scattered ownership that need to be processed and handle by the government one by one, also not as time-consuming as reclamation, the government has to deal with the opposition of the conservation community. Now, the government just only needs to recover the golf course according to the original lease agreement. The efficiency is very high, which shows that this is the best solution in short term.

In the case of high rents and inadequate supply of affordable housing, lower-income victims who cannot afford private housing rents can only rent subdivided flat with poor environment.

According to (LARRY BENNETT, 2004) the research found that after living in a shelter for two weeks, they would feel less depressed and more hopeful about the future. In Hong Kong, there are different types of shelter for victims under the Hong Kong Government. However, these shelters are not enough. The Government should provide additional shelters both in temporary and long-term in helping more victims in settling down the housing problem such as increasing Interim Housing, domestic factorial building.

For the period of stay in shelter. the maximum period of stay in a shelter is three months. It has not sufficient time for women to prepare to find an accommodation. Due to the housing policy takes more than a year, we suggested that the Government consider extending the six-month to one-year maximum period for staying in shelter.

Consumption cost of domestic premises in private housing is extremely high. There is not much financial support to the victims from government. They lose financial support from partners or even without job so that they cannot afford rent. We recommended that government offer special housing assistance scheme, which are aim to offer more than 5,000 to them for rent the private housing.

Victims who suffer violence from abuse partner tend to move out then looking for new accommodation. However, they may not have relatives or friends to go to, or not be able to afford the rents of private housing.

Victims need to face structural housing problems, such as:
1. Expensive rent;
2. Severe housing supply and demand is imbalances;
3. The waiting list for public housing continues to increase;
Those housing issues are causing the victim difficult to rent or purchase the house.

Photo from https://www.thestandard.com.hk

In recent years, Social Welfare Department has been received number of cases requesting help from domestic violence.

There were over 3,000-reported case of domestic violence on spouse annually over the year. 💔

Not only population, shortage of land and income problem, but also the housing policy to make Hong Kong has the highest property prices.

In 1972 during Colonial times, United Kingdom Government established “Small House policy”. It gives male heirs of indigenous villagers the right to buy land from the government to build a three-story house once. All of them can buy a flat below market rates. This policy is unfair to local citizen also causing higher house prices have been associated with this restrictive strategy of greenbelts. Second, after Hong Kong was handover to Mainland China since 1997, Basic Law restricted the boundary expansion. Not like other countries, land cannot expand into rural areas.

As demand and supply unbalanced, making housing in Hong Kong more difficult to afford. HKSAR Government imposed housing program in order to reduce shortage of housing supply and high property prices, citizen can apply the “Public Rental Housing Scheme” it aim at provide affordable housing for citizens who cannot afford to buy a flat. The most important thing is giving an opportunity to help lower-income household saving money and providing a stable living environment.

According to Hong Kong Housing Authority (HKHA) reported that the average waiting time for general applicants was 5.4 years and the average waiting time for elderly one-person applicants was 3.0 years.in December 2019. The waiting period for public housing is too long for lower income household.🧐

Prices of property and rents are continuing to grow up.
However, the increase in citizens' income is far from catching up.
The 16th annual Demograohia International Housing Affordability Survey 2020 reported that the most expensive property market in the world is Hong Kong. 🥶
By the survey, the Median Multiple of Hong Kong reached 20.8 years. It takes an average of 21 years for families so they can buy an apartment in Hong Kong.
Range between other countries such as Vancouver is about 12 years and Sydney is just about 11 years which are the second and third highest.
Also, the research point out the Median Household Income in Hong Kong is $343,000, while the median house price is $ 7,169,000. Furthermore the C＆SD conducts household expenditure surveys every five years. In 2016, it began to collect the latest information on household expenditure patterns in Hong Kong. The survey result showed that the average household expenditure has increased significantly by 46% in the past 10 years, reaching HK $ 27,600 per month in 2015, which is more rapid than the 37% increase in overall consumer prices. The main expenditure was housing expenditure. Living in the private house is higher than living in public rental housing. The property prices and rents in the residential property market increased significantly between 2005 and 2015, with cumulative increases of 223% and 100% respectively. Hong Kong is facing a rapid economic transformation. Most of the low-skilled and labor-intensive work has been outsourced the rate of adjustment of wages is generally lower than that of property prices and rents. The low-income group cannot afford to buy a flat on their salary or even rent a flat. Most of them driven into squalid subdivided flats. The living area per person is 40 square feet for small suite. Widen income inequality can lead to affordability in the housing market.

Based on the latest population and domestic household projections of Census and Statics Department (C&SD)’s, it shows that the Hong Kong population was 7,500,700 at the end of 2019.
The population has increased from 5.6 million to 7.5 million from 1989 to 2019. Hong Kong Government indicated that estimated population of Hong Kong might reach 8.3 million in 2043.
On other hand, the growth population is not kept up with the supply of land in Hong Kong. The area of built-up land was 16,000km2 in 1989 to 25,000km2 in 2015. It found that the area of built-up land has remained for a long period. Because of lack of land supply, some citizens want to develop part of countryside to build numbers of residential building for improving living condition. However, based on Chapter 208, Hong Kong’s Country Parks Ordinance, it aims to protect Hong Kong ’s countryside and provide suitable outdoor venues. It restricts land development in green areas. As a result, the land supply is not able to chase up the population, demand of residential housing must be a significant problem in the future, thus, Hong Kong become one of the most high property prices and rent in the world.

https://www.youtube.com/watch?v=QYhU54I4KS8

Here is a youtube video for you guys to understand why is HK housing so expensive🔍

Why is Hong Kong housing so expensive? | CNBC Explains Hong Kong consistently ranks as the world's most expensive housing market. CNBC's Uptin Saiidi explains why. ----- Subscribe to CNBC International: http://cn...

Land supply is not able to chase up the population, demand of residential housing must be a significant problem in the future, thus, Hong Kong become one of the most high property prices and rent in the world.😮

🥶🥶🥶Population of Hong Kong was 7,500,700 at the end of 2019.
The population has increased from 5.6 million to 7.5 million from 1989 to 2019.
Obviously, the population of Hong Kong keeps increasing.
Hong Kong Government indicated that the estimated population of Hong Kong might reach 8.3 million in 2043. 🥶🥶🥶

In recent years, land shortage is a significant problem in Hong Kong. Citizens are facing expensive rent and high property prices in a small living space. The problems of living conditions are pricy, tiny and overcrowded. 😰

Affordable housing is a major problem in Hong Kong🤨🤨