Hong Kong’s housing minister has defended an estimated HK$4.39 billion price tag for managing 30,000 temporary flats which are planned for the city, saying this would cover maintenance, cleaning, and other amenities.
The units will be part of the Light Public Housing (LPH) scheme, which aims to boost the city’s short-term housing supply by providing prefabricated flats that will be retired after five years of use.
The bureau’s estimate amounts to operational costs of around HK$1,000 per month for each temporary unit.
The scheme, announced in Chief Executive John Lee’s maiden policy address, caters for those waiting for public rental housing and offers flats at a relatively lower cost. Eligible tenants will be able to occupy the units for a fixed term of two years.
‘Three in one’
Speaking in the Legislative Council on Thursday, Secretary for Housing Winnie Ho said that the bureau was taking a “three-in-one” approach, whereby the operational costs would include cleaning and security services, maintenance, and other facilities including new transport links.
Ho was addressing lawmaker Vincent Cheng of the Democratic Alliance for the Betterment and Progress of Hong Kong, who voiced concern about the operating costs and whether tenants would have to shoulder them.
She said a new bus stop with four new routes would be built near the LPH project at Siu Lam, as well as a waterfront promenade. “These operational costs will be included in the project,” she said.
According to the bureau’s written response to lawmakers, the operational costs are expected to cover social services and other basic community facilities such as convenience stores, in addition to property management and daily maintenance.
It also said direct comparison of operational costs was “not suitable,” as LPH units were different from other forms of public housing.
According to government records, the average annual maintenance cost for public rental housing in 2022-23 was HK$5,380, while management costs were HK$6,980 on average.
Addressing concerns that most of the LPH units were designed for one or two occupants, Ho said authorities had taken into account data from transitional housing operators showing that larger families preferred flats in urban areas, while smaller ones wanted flats in the New Territories.
Construction of the first batch of 17,000 LPH units began in February, and is expected to be completed by the end of next March. Lawmakers in February approved funding of HK$9.8 million for 13,000 more temporary flats.
The authorities aim to complete the 30,000 flats, estimated to cost HK$24.7 billion to build, by 2027-28. While some lawmakers have touted the housing plan as a way to “buy time with money,” others have questioned whether it is cost-effective.
The average waiting time for a permanent rental flat increased to 5.8 years last month, as the government cited construction delays. It said supply would “register a clear upward trend” in the coming decade.
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