Opinion | How Carrie Lam can cool the anger in Hong Kong – address the housing crisis

Directly addressing the most pressing issue facing Hong Kong may be the government’s only way to pacify an outraged public. Public unrest reached boiling point with the government’s mishandling of the extradition bill, which has sparked massive protests. While the bill may have been the straw that broke the camel’s back, the government’s handling of Hong Kong’s housing problem has been a simmering public issue for years.

A report last month found that, in April, Hong Kong home prices rose at their fastest pace in over six years. So, when the government tried to rush through the extradition bill, many questioned why it had taken precedence over the most important issue – Hongkongers’ livelihood. With the housing problem seemingly on the back-burner, it comes as no surprise that the public has become disillusioned.

Frustration over housing has been building for years. Last year, the disparity between the rich and poor in Hong Kong was the greatest in 45 years. Unaffordable housing have contributed to an ever-widening wealth gap. For nine straight years, Hong Kong was and still is the world’s most expensive housing market, according to the Demographia International Housing Affordability Study. It is difficult for young Hongkongers, many of whom have taken part in the recent protests, to fathom that it would take a family on average 21 years to save enough money to buy a home in the city.

Chief Executive Carrie Lam Cheng Yuet-ngor once said that housing was “the most important, most complicated, and most serious problem” in Hong Kong. Previous governments had attempted to curtail soaring home prices, but to no avail. The recent vacancy tax proposal should at least unlock some housing supply in the market, although critics believe that the measure is toothless, describing the tax as a “political gesture” and a “paper tiger”.

Nevertheless, the government continues its current land sale policy, which encourages deep-pocketed developers to bid exorbitant amounts for land. For instance, the government sold four plots of land at the former Kai Tak airport site at 50 per cent above market valuation.