Judul : Hong Kong balances public housing targets with cost-saving measures amid review
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Hong Kong balances public housing targets with cost-saving measures amid review
Secretary for Housing Winnie Ho says possible project postponements will not hinder target of supplying 308,000 homes in the next decadeHong Kong authorities are actively seeking ways to reduce the construction costs of public housing, including a review of foundation designs and the postponement of projects facing significant technical challenges, the city's housing minister has revealed.
Secretary for Housing Winnie Ho Wing-yin assured in an exclusive interview with the Post that the project review would not jeopardise the overall target of supplying 308,000 public flats in the next decade, as any reduction in homes from postponed projects will be offset by an increase from other developments.
"For each of the projects [with more technical challenges] postponed, I must ask my colleagues whether there is something that can be fast-tracked. We cannot postpone everything, or we will lose the target," she said.
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Chief Executive John Lee Ka-chiu has pledged to cut the waiting time for a public rental home from the current 5.3 years to 4.5 years by 2026-27, prioritising improvements to the city's standard of living.
Given the financial difficulties faced by the city's largest public housing provider, the Housing Authority, coupled with the administration's substantial financial deficit and a subdued property market, authorities are now intensifying efforts to lower public housing construction costs.
Last month, the government postponed an 8,300-flat public housing estate in Fanling, New Territories. Instead, it prioritised other "more cost-effective" projects in and around the area, which are expected to yield 38,000 homes.
Authorities explained that the Fanling site had complex geology with a deep bedrock layer, which could extend the construction period by at least 10 months and increase the average flat construction cost by up to 90 per cent due to extensive foundation work.
Asked if more sites would be put on hold, Ho confirmed that the government was still reviewing whether additional ones with technical challenges should be deprioritised, without specifying the number of projects under consideration.
The authority primarily relies on selling subsidised homes to generate revenue for the construction, operation and maintenance of public rental homes. Ho emphasised that lowering building costs would enable the authority to maximise its income.
She explained that some existing estates under production could accommodate more homes, ranging from a few dozen to several hundred flats, if housing authorities could modify their layout plans or if the Town Planning Board permitted a higher development density.
But, some cases will involve discussions with other departments, such as using road surfacing materials that minimise traffic noise, allowing more flats to be added to properties facing streets.
Ho noted that rearranging the development priorities of sites could lead to significant savings.
According to the Housing Authority, the average construction cost of a rental flat rose from HK$650,000 (US$96,836) in the 2020-21 financial year to HK$970,000 in 2023-24.
Over the same period, the average cost for building a subsidised home jumped from HK$760,000 to HK$1.15 million.
Foreseeing a further growth in construction expenditure due to increased production and costs, the authority said it could still meet the expenses up to 2028-29 but its cash and investment balance is projected to drop 39 per cent from about HK$65.8 billion in early April 2025 to HK$40.2 billion in March 2029.
Ho said that the authority would also review its construction procedures and focus on the most cost-effective steps, such as revising foundation piling designs and parameters, and using lighter building materials.
Drawing inspiration from her recent trips to Barcelona and Lisbon earlier this month, where social housing is built at a low cost with minimalist aesthetics such as unpainted concrete blocks, she suggested that Hong Kong could also consider simplifying estate designs.
She referenced the brutalist architectural style, characterised by exposed raw concrete, which gained global popularity in the 1960s and 1970s, including in Hong Kong.
"[In Hong Kong], we now focus a lot on whether the material will easily cause scratches and trap dust. But if they accept these relatively raw materials, we can save from skipping plastering and painting," she said, referring to the process of applying a smooth, protective and decorative coating to walls and ceilings.
"It can be a new style of housing that is humble, decent, simple, but stylish."
Other ideas under consideration include removing metal gates from the doors of future flats, omitting finishes for mechanical or storage rooms in estates, and refraining from installing fences for landscaped areas, despite potential savings being limited.
"I aim to save as much as we can, and not to waste anything," she said.
Ho also highlighted that Hong Kong's strengths were recognised abroad, where experts have found the small robots used for construction and the city's experience in combating the abuse of public housing resources to be particularly attractive.
She added that an international conference in November would provide a platform for the authority to showcase more local construction technologies to visiting experts from the city and the Greater Bay Area.
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This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.
Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.
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