In the midst of Hong Kong's ongoing housing crisis, a recent survey revealed that 30% of respondents would choose to 'lie flat'—a term used to describe opting out of the rat race—by declining a pay rise to maintain eligibility for public housing. This sentiment underscores the growing frustration among young adults in the city, where 85% believe that the unaffordability of private flats is driving them to consider such drastic measures. The survey, which included 367 participants aged 18 to 40, also found that 63% of respondents view property ownership as extremely important, yet only 33% can afford flats priced under HK$2 million, and 20% can manage properties between HK$2 million and HK$2.99 million [f504d916].
The Chief Executive, John Lee Ka-chiu, criticized the notion of sacrificing income for public flats, emphasizing the need for a more sustainable approach to housing. In his comprehensive policy address delivered on October 20, 2024, Lee prioritized economic development, particularly through the Northern Metropolis initiative, while also announcing plans to regulate subdivided flats with minimum standards of 86 square feet and a ceiling height of 2 meters. This new legislation aims to ensure that only registered units meeting these standards can be leased, with consultations on the requirements set to launch later in 2024 [12b135a9].
This comes in response to the alarming number of subdivided units—over 110,000 in Hong Kong—leading to the formation of a task force to address this issue, with the central government aiming to eliminate subdivided flats and cage homes by 2049 [b7853198]. The average waiting time for public rental flats in Hong Kong currently stands at 5.5 years, a statistic that highlights the urgency of the situation for many residents [f504d916].
In a significant development, Housing Minister Winnie Ho Wing-yin announced plans to enforce regulations against landlords of unregistered or poor-quality subdivided flats starting in 2028. The legislative process is set to begin in 2025, with a registration period of 12 to 18 months for landlords to comply. Those who meet the requirements will have their flats designated as 'basic housing units.' Notably, John Lee noted that 30% of the 110,000 subdivided flats are considered 'improper.' Proposed penalties for violations could include up to two years in prison [4d5e80ff].
Landlords of subdivided housing units are expressing concerns regarding these proposed regulations, which would require them to cover the costs of fixing defects in their properties. These regulations are part of a broader effort to improve living conditions for tenants in subdivided homes, which are often characterized by cramped and substandard living conditions. Landlords warn that the financial burden could lead some to exit the market entirely, further complicating the housing landscape [8dfbef1e].
As the government considers these proposals, the need for a balanced approach that addresses the interests of both landlords and tenants is becoming increasingly apparent. The introduction of community living rooms by NGOs, such as Caritas Hong Kong, aims to provide shared spaces for tenants in subdivided homes, offering them a sense of community and access to essential services. The government has allocated HK$100 million for community living room projects, with the first one opening in Sham Shui Po, serving 500 families annually [8dfbef1e].
Mike Rowse, a long-term resident, emphasizes the critical need for larger flats to retain international talent, arguing that the current high property prices and small living spaces could drive skilled professionals away from Hong Kong. He highlights that housing quality and size are essential for the city's future economic growth, particularly as it competes for talent in a global market [d11aa884]. The intersection of these issues reflects a complex housing crisis in Hong Kong, where the aspirations of young adults clash with the harsh realities of the property market. Policymakers must navigate these challenges carefully to create a housing system that is equitable and sustainable for all residents.