- One keynote policy was aimed at providing an easier path to subsidized housing for Hong Kongers under the age of 40 amid concerns about their ability to get a foothold in the market.
- Lee also said that the government will continue to expand its public housing supply and address problems with Hong Kong's small subdivided flats.
Hong Kong chief executive John Lee announced moves aimed at addressing the city's housing affordability crisis, calling it "an issue of great public concern" in an annual policy address on Wednesday.
One keynote policy announced in his speech will look to provide an easier path to subsidized housing for citizens under the age of 40 amid mounting concerns about their ability to get a foothold in the city's crowded housing market.
Under the plan, the Hong Kong Housing Authority will allocate an extra ballot number to applicants aged below 40 — a move that will increase their chances of being selected for the city's subsidized Home Ownership Scheme flats.
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The government will also increase its quota for the "White Form Secondary Market Scheme"— under which secondhand subsidized flats can be bought and sold without a land premium — by 1,500, all of which are reserved for applicants under 40. Only 4,500 households were eligible for flats under the scheme in 2023.
The move comes amid reports and fears that young Hong Kongers in the city may decline promotions and pay raises for the purpose of remaining eligible for public housing rather than enter the private market.
To further address youth housing affordability, the government will continue its Youth Hostel Scheme, which subsidizes non-governmental organizations' renting of hotels and guesthouses for use as youth hostels.
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The 2024 Demographia International Housing Affordability report ranked the city as the least affordable place to find a home for over a decade. The city's over 100,000 "shoe-box sized" subdivided flats, which have been linked to problems with health and safety, are often used to drive home this fact.
Lee said on Wednesday that the city would launch a new system for renting subdivided flats, with "substandard" units to be converted into "Basic Housing Units" that meet new requirements such as windows, toilets and a size larger than 86 square feet.
He also said the government expects to complete about 9,500 new public housing units next year, moving toward a goal of completing about 30,000 units by 2027-2028.
The current wait time for a public housing unit in Hong Kong is 5.5 years. According to Lee, the wait time could be shortened to 4.5 years in 2026-2027.
The policy address on Wednesday was Lee's third in his five-year term, and it had more focus on improving residents' livelihoods and strengthening the city's economy than before.
Prior addresses had been more focused on issues of national security and post-pandemic recovery measures, with Lee taking over the city after a period of civil unrest that led into the Covid-19 pandemic.
