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News From Afar Hong Kong

Behind the Shimmers of a Thriving Economy

A look into the housing market in Hong Kong, and how you can help.

By Sophia Mann, 2023

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Cage Homes

  • With nearly 1 in 5 residents living below the poverty line has forced many to live in cubicles or cages the size of a bed, and on top of each other.
  • The UN call this “an insult to human dignity”.
  • How did this happen?
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Hong Kong Housing today

  • 13th richest country & 187th in size.
  • 7.5M in population.
  • 1 in 7 are millionaires | 66 are billionaires
  • $2,091 per sqft for vs. NYC at $526
  • 6 wallets is what it takes to live in HK - a couple & 2 sets of parents.
  • Low income public housing has 100,000 homes for 250,000 applications but only 15,000 free up in any given year.
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170 Years of History

  • A leasehold system in place since the 1840’s with 50 - 75 year periods to developers, but only 3.7% of the land is zoned for high-density housing.
  • An economy designed to be business friendly with low taxes andland leases deliver most of the HK governments revenue.
  • Population grew 275% from 1950 to present
  • Housing pricing rose 300%from 2000 to present, but wages only 50% - a huge gap.
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Leasehold

  • 1841 - 1945 was rapid urbanization with leaseholds for 75 years established, and the major income source for HK.
  • 1946 - 84 flourished economically with its ports, textiles, and finance
  • 1984 - 97 the British-HK gov. Introduced the small house policy to develop the new territory.
  • 1997 - present day leaseholds continue for 50 to 75 years,  the small house policy now to limited.
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Population growth

  • Relentless growth in the last 70 years.
  • Only 800,000 public housing homes total.
  • Surge in birth rates between 1951 - 61.
  • Surge in immigration from the China civil war in the early 1950’s.
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Land Use

  • Only 3.7% of land is zoned for high density urban housing.
  • Long land leases granted for 50 to 75 years to a few major developers with no interest or incentive to develop faster.
  • The tax on land from these developers accounts for 20% of GDP and 78% on government income to HK.

Housing costs skyrocket

  • Housing increases 300% and rents 100%.
  • Wages only increase 50%
  • New territory housing protects single dwelling only per earlier legislation.
  • Environmentalists block reclaimed land projects.
  • No tax incentives for developers to build more housing, while government earns its revenue.
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Contrasting with Singapore

Metric Hong Kong Singapore
Population 7.5M 5.5M
Public Housing Units 0.8M 1.0M
% Of Population In Public Housing 45% 80%
% Land Area Developed 3.7% 14%
  • Over the last 61 years the Singapore Housing Development Board (HBD) have kept up
  • The government has cooperated allowing more land development and access.
  • Easy access to schools, markets, healthcare, and sports facilities are all included .
  • Singapore wait time is 6 months versus
    
Hong Kong at 5.7 years for public housing.

Government, business, & resident actions can solve

  • Take back some of the lease holding, and give tax incentives to develop housing for lease holders, else increase property tax to fund other solutions.
  • Develop some of the public park areas as there is a lot.
  • Incentivize New Territory home owners to build beyond single dwelling home granted during the 1980 - 90’s.
  • Reclaiming land, as was done 1890 to gain 60 acres, and 26 sq. mi today.
  • Invest and update the old public housing to increase the average living space.
  • Subsidize more affordable housing in the short term for relief.
  • Update the public housing system to incentivize residents to generate new value through training, and limiting the time for low income public housing stays.
  • Establish new Central Business Districts in the new territory where there is land.

Conclusions

  • With tougher measures to re-balance property tax incomes and fund lower income housing, coupled to incentives for residents to generate value poverty conditions can be improved greatly.
  • Requires government, business, and citizens working together - but only a small amount has to be given up to create the needed gains.
  • The crisis is solvable and more quickly than the current 2049 mandates.
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Quotes

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Being able to go out and help people and interact with people and seeing the joy on people’s faces, especially customers, like the food was still hot when we gave it to them, so many people were so surprised, they were really, really overjoyed, and it was a really great way to spend Christmas Eve. One really memorable moments was when we went there was a guy living under a bridge and we went to him and he was wearing all neon, we went over and gave him a chicken, and he was like “I have to leave soon, I’ve gotta go to work.” And it was like this construction job, and it just shows that even people with a job can still struggle.
Imogene Koch
Imogene KochSoJo Foundation Volunteer
"Wow! I was so impressed with what Sophia wrote and how heartfelt it was! This was an experience she will never forget! Thanks so much for sharing it with us and i'm glad I had tissues right next to me
Beth Ann Zuvella
Beth Ann ZuvellaElementary Principal, Stratford School, San Jose
I used my own money earned for summer jobs to add to the fund raising, to help my own community. A very rewarding feeling.
Sophia Mann
Sophia MannCEO/Founder SoJo Foundation
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  • Based in San Jose, CA
  • info@sojofoundation.org

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