Housing shortages have long been a pressing issue in Hong Kong, with public housing waiting times under constant scrutiny. According to the latest figures from the Housing Authority, as of December 2024, the average waiting time for public housing has dropped to 5.3 years, marking a 0.2-year decrease from the previous quarter and the lowest in six years.
In his latest Budget Speech, Financial Secretary Paul Chan announced that, including transitional housing, a total of 190,000 public housing units will be supplied over the next five years. As more projects are completed and occupied, waiting times are expected to shorten further.
The second phase of Light Public Housing began accepting applications from eligible individuals at the end of last month. This phase includes projects in Kai Tak’s Olympic Avenue (Phase 1), Tuen Mun (Tsing Fu Street), Kwun Tong (Shun On Road), and Sheung Shui (Choi Yuen Road)—the latter two being converted from school buildings. In total, these projects will provide approximately 5,060 units, with tenants expected to move in progressively from Q4 2024. Monthly rents range from HK$860 to HK$3,270.
Among these, Kai Tak’s Olympic Avenue (Phase 1) project is expected to be the most sought-after due to its convenient location and better school network. This site will offer 2,970 units, ranging from 151 to 344 square feet, with monthly rents between HK$1,310 and HK$2,990.
To qualify, applicants must have been on the public housing waiting list for at least three years, with priority given to family applicants. Eligible individuals will receive an invitation letter, and once accepted, they cannot apply for another Light Public Housing project.
You may have noticed that for public housing applicants who have been waiting for over three years but do not live in public housing or receive Comprehensive Social Security Assistance (CSSA), the government introduced a three-year pilot Cash Allowance Trial Scheme (CATS) in June 2021. This scheme was later extended but is set to end in June 2025, with a review planned.
Naturally, people may wonder: How much is the cash allowance?Under the scheme, eligible households receive HK$1,300 to HK$3,900 per month, depending on household size. If some family members do not meet the eligibility criteria, others in the household who do can still receive the allowance.
Before the Budget announcement, the Concerning Subdivided Units Alliance conducted a survey among subdivided flat tenants, collecting 247 responses. The results showed that 62.2% of respondents were struggling financially. The alliance recommended making the cash allowance scheme permanent and expanding it to cover single applicants under 60 and families who have been waiting for public housing for less than three years.
With a budget deficit of HK$87.2 billion this fiscal year, the latest Budget did not adopt these recommendations. There was no mention of extending the scheme or any future plans for it. With the scheme set to end soon, what are your thoughts on this decision? Should the government extend or even make it a permanent policy?
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