Hong Kong leader announces measures to address housing crisis in annual policy address

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.

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.

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