Public support vital for housing policy
Updated: 2017-11-13 07:41
By Peter Liang(HK Edition)
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The government apparently has given much thought to managing public expectations of its ambitious housing policy that seeks to address a primary concern of many Hong Kong people.
Top government officials, including Chief Executive Carrie Lam Cheng Yuet-ngor, have gone out of their way to explain details of the policy in numerous public forums, television and radio interviews and press conferences.
Hardly any other government policy - social or economic - has been so forcefully and exhaustively communicated to the public. Some real-estate commentators have scoffed at these efforts, deriding them as nothing more than public relations antics that fail to convince industry insiders that the policy will work. They cited the persistent surge in home prices after the policy was announced earlier this month to justify their cynicism. These doubters have missed the point. It will take time for the new policy, which involves a massive building of subsidized homes for sale or rent to the public, to mature.
The government has made some concrete suggestions in trying to find land for the many large-scale projects. Some of these proposals will involve tedious and time-consuming negotiations for joint development on rural land owned by the major real-estate companies. The government has said it will need wide public support for its plans that would unavoidably touch on some of the most sensitive and controversial issues. Even at this early stage of the plan, the usual crowd of government critics are already insinuating unsavory "collusion" to cull the favor of the major developers at the public expense.
Another proposal to reclaim land from the sea at various locations and redevelop the fringe areas of some country parks has triggered strong protests from environmentalists and social activists. They contend that there are other ways to create development land without harming the environment or threatening endangered marine animal species. As such, winning public confidence is seen as key to the success of the government's new housing policy. There will always be voices of dissent, which are a healthy sign of Hong Kong's diverse society.
But even the most vindictive opposition politician would find the political cost too high to oppose a government plan that has won overwhelming public support. To win public confidence, the policy would need to show immediate results, no matter how small they may be. Television images of the plight of children living in squalid subdivided flats with their families have brought home the message that quick, if only temporary, solutions are needed to solve the acute housing shortage problem. For that reason, the government has proposed to work with some non-profit organizations to convert old apartments into subdivided flats that meet the basic safety and hygiene standards for rent to the neediest families.
What is more, there is a plan to build prefabricated apartments that can provide temporary homes to many people who are waiting in line for subsidized public housing. In the longer term, the government is shifting the emphasis to homeownership to satisfy the yearnings of many families who cannot otherwise afford to buy homes at current market prices.
The government has built about 700,000 apartment units for rent to the public. It calculates that about 100,000 or so more such flats will meet demand, and will concentrate resources on building homes for sale at subsidized prices to qualified applicants and first-time homebuyers.
This policy represents a sharp departure from past thinking and gives hope to many prospective homebuyers who are caught up in property fever. The rise in home prices in recent years has led many prospective homebuyers to believe if they don't buy now, they will never be able to afford it later. The resulting property rush has the predictable effect of pushing prices even higher despite repeated warnings from the government that it is unrealistic to expect property prices will only go up.
The chief executive made the government's new housing policy, with its emphasis on purchasing rather than renting, clear in a recent interview with a local newspaper. The policy shift should have greater effect than the various administrative measures introduced in the past to cool the market.
What's the hurry now when you can expect a steady supply of government-built apartments for sale at below market prices?
The author is a current affairs commentator.
(HK Edition 11/13/2017 page8)