Hong Kong’s Public Housing Allocation: Challenges in Balancing Efficiency and Fairness for Non-Elderly Applicants

Abstract

Having one of the most unaffordable property markets in the world resulted from the government’s decision to lower taxes and generate revenue through land sales. However, unaffordable housing is one of the main contributors to social issues such as a record low fertility rate. The Hong Kong government offers residents public rental housing units through its Long-Term Housing Strategy (LTHS). However, the system is far from equitable or fair. The government deliberately limits the number of available housing units for non-elderly single applicants to discourage them from relying on government help but to move up the social hierarchy through their efforts and ability through the Quota and Point System (QPS). Using the data provided by the Hong Kong Housing Authority for different applicant groups over the past few years, it is patently clear that the current QPS system is neither efficient nor fair since the average wait time is six years and the quota is limited to 2200 flats a year, a mere fraction compared to the number of applicants. The paper also explores whether there are better alternatives by comparing the housing solutions to Singapore’s Housing Scheme. It offers suggestions on how the government might improve its QPS system.