FS Vows To Tackle HK's Housing Problems

Financial Secretary Paul Chan said on Sunday there must be "substantial" progress in tackling Hong Kong's housing problems if the SAR is to get rid of subdivided flats by 2049.

He made the comments on his weekly blog, responding to remarks by a senior Beijing official, Xia Baolong, who had said Hong Kong needed to "bid farewell" to cage homes in the next two decades or so.

The Chinese Communist Party has set 2049 - the 100th anniversary of the founding of modern China - as its second centennial goal to "build a modern socialist country that is prosperous, strong, democratic, culturally advanced and harmonious".

Chan said while solving the problem of subdivided flats was now a target, the administration also needed to tackle other housing problems, such as expensive flats and small living spaces, that were affecting the society's development and stability.

"The high living costs not only make it difficult for young people to save money and accumulate personal wealth, it also hinders their willingness to innovate boldly. Enterprises facing high rent would also suppress the diversification of the economy", he wrote.

"Tackling land and housing problems are no longer a pure economic or financial problem... it is an economic problem, livelihood problem, as well as a major political problem," Chan continued.

The finance chief said the administration needed to simplify complicated procedures in land development and increase the city's long term land supply through, for example, reclamation.

Executive Councillor and legislator Regina Ip said amending legislation to speed up land supply should be easier now as there was no opposition in the legislature.

"The government's inability to supply more land was limited not just by the Town Planning Ordinance, but at least three others statutes such as the Foreshore and Sea-bed (Reclamations) Ordinance.

"But now that we have a more efficient legislature, we could help the government to review this legislation, simplify procedures and shorten the time for land development," she said.