Public housing wait times in Hong Kong hit 5.6 years

The backstory: Hong Kong is one of the world's most densely populated places, with a population of around 7.5 million. But the city grapples with soaring housing prices, currently clocking a public housing wait time exceeding five years. The government initially pledged a three-year average waiting time for public housing. But by 2022, it shot up to around six years, marking the longest wait time since 1998. While the Housing Authority reported an improvement at the end of last year, the wait still averaged around 5.3 years.

On top of that, Hong Kong is dealing with a record-low birth rate. To address this, Chief Executive John Lee announced a strategy in his 2022 policy. This included a cash bonus for new parents and the introduction of the "light public housing" scheme. This involves pumping out 30,000 quick-fix “transitional” homes for families waiting three or more years, with the first batch ready by 2025 and the rest by 2027-28. 

More recently: Over the weekend, the Housing Bureau in Hong Kong slashed the waiting time for transitional public housing applicants with newborns born after October 25, 2023. Families now qualify for Category A tenancy after only a two-year wait, down from three. The Housing Bureau sees this as a strategic move to boost fertility rates and make it easier for families to find suitable housing.

The development: According to a recent government warning, the average waiting time for a public rental flat is on the rise again, hitting 5.6 years. This is the first increase in over a year because of a shortage of new public rental homes. Families and elderly applicants used to expect a 5.3-year wait, but this year saw a dip in public rental housing production, particularly in urban areas outside the New Territories. So, many applicants are turning to refurbished flats.

While the housing authority says wait time will increase in the short term, it remains optimistic about things getting better in the last half of 2024 and beyond. This will be because the public housing supply will continue to grow, and the government will also add more temporary housing options – around 30,000 more flats – in the next few years.

Key comments: 

The new measures “would help families with newborns in need break away from the difficulties swiftly and have a better quality of life,” said the Housing Bureau in a statement.

“Childbearing is a major life decision involving many considerations,” said Hong Kong Chief Executive John Lee in October. 

“Making the wait for public housing three years is still the government’s target. We are striving to achieve that,” said Secretary for Housing Winnie Ho Wing-yin. “It is inevitable that more flats will be in the New Territories. We are still finding sites in urban areas and on Hong Kong Island. We hope flats can be spread across the city.”