Unfair Housing Subsidy and Public Housing in Hong Kong

Abstract

Hong Kong has one of the largest public housing programmes in the world, second to Singapore, with over 45% of the total population living in public housing. However, there are still a large number of people in need of housing assistance. A more efficient and equitable housing policy needs to be found. Public housing in Hong Kong is subsidized by the government mainly in the form of land, infrastructure, and low interest rates, but housing subsidy is not allocated to the most needy people. Some of the public housing is occupied by people who can take care of their own housing needs. Housing subsidies can be used more efficiently and equitably if these people are encouraged to move out of public housing or charged a more reasonable rent. The nature of horizontal and vertical inequity in housing subsidies in the public housing of Hong Kong is discussed and the effectiveness of some of the measures that have recently been used to tackle the problem of unfair housing subsidy is examined.