The real estate market in Hong Kong and suggested public policies Essay

The real estate market in Hong Kong and suggested public policies - Essay Example Hence, it is certainly inevitable that a subsidized public housing program will bear significant effects on households, the economy, and society (Feng 2010, p. 3). The account of subsidized housing policy in Hong Kong has witnessed multiple twists and turns over the decades with divergent outcomes. Frequently, the changes brought unanticipated consequences with some leading to disastrous consequences. Some of the core problems detail that property tenure and occupancy rights in Hong Kong remain erratic in which there are four critical categories of housing tenure; private sector owner occupiers, private sector renters, subsidized public tenants, and subsidized public sector owner occupiers (Lam 2000, p.397). The Hong Kong economy is credited for its legendary resilience since, despite several momentous setbacks such as Great Proletariat Cultural Revolution (1966-1976), incidents of financial and banking rises, and significant oil crises, the Hong Kong economy has remained fairly stab le with no registered negative economic growth (Lam 2000, p.398). However, the financial crises of the 1997 and 2008 had a negative impact on housing and led to a substantial industry’s downturn. ... In April 1954, the government established a semi-independent body, Hong Kong Housing Authority, to render long-term improvements in the living environment, especially for the low income families. The initial low cost housing was constructed in 1958, in North Point and featured independent facilities (Yung 2008, p.6). This marked the earliest form of Resettlement Building with a total of 11,000 units of public rental housing built from 1958-1968 by the society. 1970-1985 In Oct 1972, the government announced an ambitious housing program to avail decent living accommodation to close to 1.8 million citizens in one decade. Starting from 1978, Housing Authority launched several schemes including Home Ownership Scheme (HOS) Private Participation Scheme (PSPS), plus other loan schemes. From 1973 to 1982, close to 220,000 flats were constructed (encompassing HOS and PSPS), which housed close to 1 million people (Keung 1985, p.24). 1985-2000 In 1987, the launch of Long Term Housing Strategy p ursued in aid all the families to acquire suitable and affordable housing. The emphasis in this case changed from the provision of public rental units to sponsorship of homeownership among citizens as part of long-term solutions of housing problem. The strategy speeded up the expansion of HOS and PSPS and facilitated enhanced utilization of a private developer’s resources, besides the introduction of Home Purchase Loan Scheme (Yung 2008, p.7). In the Ten-year Housing Plan, (1997-2006), the housing authority oversaw the construction of more than 85,000 flats per year with public housing flats accounting for 50,000 flats. From 1997, families living in public rental