In 2022, Chinese President Xi Jinping expressed the need to support young Hong Kongers in housing purchases, studies, employment, and entrepreneurship, stating that the city will only thrive when its youth are successful. This led to the launch of a project aimed at providing affordable and higher quality housing for young people in Hong Kong. One example of this effort is Mr Chan’s youth hostel located on the outskirts of the city, which offers a more suitable option for young individuals looking for housing.
However, the housing situation in Hong Kong is not without challenges, as many residents, including young people, are forced to turn to subdivided flats or cage homes due to the shortage of housing supply. With an average wait time for public housing of 5.8 years, more than 214,000 people in Hong Kong currently live in cramped and tiny apartments. Sophie Li, a 32-year-old woman in the media industry, shared her experience of residing in a subdivided flat due to budget constraints, with rent taking up one-third of her monthly income of around HK$20,000.
Despite government efforts to increase land availability for private and public housing in Hong Kong, housing affordability remains an issue for the younger population. Zerlina Zeng, head of East Asia corporates at financial research firm CreditSights, highlighted this challenge on CNA’s East Asia Tonight programme. While initiatives like Mr Chan’s youth hostel and other affordable housing projects are steps in the right direction, the demand for housing among young residents in Hong Kong continues to outpace the available supply. This gap poses a hindrance for many young people looking to save for their future housing needs.
The high cost of housing in Hong Kong has pushed many young individuals like Sophie Li to resort to more affordable housing options such as subdivided flats, despite the limitations in space and living conditions. Ms Li’s goal of limiting her housing expenses to one-third of her income has led her to live in a subdivided flat where she can save a few thousand dollars each month. This cautious approach to budgeting reflects the financial challenges faced by many young residents in Hong Kong who are navigating the expensive housing market while striving to secure their future housing needs.
In response to the growing demand for affordable housing in Hong Kong, there have been ongoing efforts by the government to increase land supply for both private and public homes. These initiatives aim to address the housing affordability issues faced by young residents and provide them with more viable options for securing suitable housing. Despite these efforts, the gap between housing demand and supply remains a pressing concern for many young people in Hong Kong, highlighting the need for continued support and investment in affordable housing projects to ensure the well-being and future prospects of the city’s youth population as they strive to save for their housing needs.
