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SCMP Editorial

Step by step, the Hong Kong government is doubling down on its long overdue crackdown on the misuse of public housing.
Following a requirement to declare assets and income and the setting up of a reward scheme for tip-offs on abuse, its next target is to force out tenants who are too wealthy to remain in subsidised flats. Authorities must not exclude taking stiffer measures to guard against misuse.
Currently, households earning two to five times the income limit are only required to pay 1.5 times to twice the standard rent.
Under new rules passed by the Housing Authority this month, those affected will need to pay 2.5 to 4.5 times more starting from October. Additionally, if their income is found to be four to five times the limit for four years, they will have to move out.
The rules may be belated but they are essential to ensure public housing goes to residents who have genuine needs. But there are those who find the rules too lenient.
Even when the rents are increased 2.5 times, they may still be considerably lower than those in the private property market.
Questions also have been raised over whether well-off tenants should be evicted quicker. The first batch of affected households is expected to move out by October 2029 at the earliest.
They also will have priority in purchasing subsidised housing under their “green form” status for four years after surrendering their flats.
Official data shows a year ago only 4 per cent, or 34,700 households, were well-off tenants who had to pay up to double the standard rent each month, plus rates.
The authority estimates that at least a few hundred units could be released as a result of the new rules. With as many as 807,800 households currently living in the flats concerned, the true scale of abuse may be a lot worse. Those who no longer qualify for subsidised housing must not be allowed to remain in such premises.
The higher rents are expected to bring in an additional HK$1.5 billion (US$193 million) in annual revenue. But the move is not about helping the deficit-hit government to make more money; rather it is about upholding the principle of confining the use of scarce public resources to those who quite clearly deserve and require them.


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Hong Kong housing

Hong Kong’s public housing is for those most in need

A public housing estate in Wong Tai Sin. Nearly 1,200 of the most well-off tenants in Hong Kong’s public rental flats will be forced out in four years’ time even if they are willing to pay higher rents, in a proposal by the Housing Bureau aiming to tackle abuse of public resources. Photo: Nora Tam

Hong Kong urged to offer well-off tenants priority ‘carrot’ to buy subsidised flats

Under the Home Ownership Scheme, 40 per cent of subsidised flats are reserved for households with elderly members and families with newborns. Photo: Nora Tam

The Housing Authority has approved the government’s plan to raise the rent of well-off tenants in public flats by up to 2.25 times the existing amount. Photo: Nora Tam

Hong Kong’s most well-off tenants will be hit in the pocket under new policy

The first batch of well-off tenants expected to move out as a result of the measures will do so by October 2029 at the earliest, according to a Housing Authority member. Photo: Jonathan Wong

Tenants whose income is above the limit by five times or whose assets exceed the limit by 100 times are asked to return their flats. Photo: Jelly Tse

Hong Kong property demand aided by stamp duty cuts, but stocks and interest rates are key

A view of Kowloon from the sky100 Hong Kong Observation Deck on February 27. Photo: Sam Tsang

Financial Secretary Paul Chan Mo-po, at the Hong Kong Coalition of Professional Services lunch at New World Harbour View in Wan Chai on March 11. Photo: Jonathan Wong

Potential buyers queue up for China Vanke’s Le Mont residential project in Tai Po at its sales office in Cheung Sha Wan on March 15. Photo: Nora Tam

Hong Kong property firm Gale Well trying to sell US$386 million in assets amid slump

Gale Well Group vice-chairman and CEO Jacinto Tong Man-leung, pictured at his office in Wan Chai on February 25, 2025. Photo: Jonathan Wong

A view of the Butterfly on Morrison hotel on Morrison Hill Road in Wan Chai. Photo: SCMP

Window cleaners work on the Far East Finance Centre in Admiralty. Photo: Edmond So

Opinion

Hong Kong cracks down on abuse of subsidised flats by tightening rules and raising rents for residents who can afford to pay more


Hong Kong cracks down on abuse of subsidised flats by tightening rules and raising rents for residents who can afford to pay more.


Hong Kong

Hong Kong property

Property policies

Hong Kong society

Hong Kong economy

Poverty

Hong Kong politics

Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


Column

Editorial

Editorial | Hong Kong’s public housing is for those most in need

Hong Kong cracks down on abuse of subsidised flats by tightening rules and raising rents for residents who can afford to pay more