Hong Kong’s housing crisis is symbolised by its tiny “gnat flats” (гнэт — мушка, комар). The anger of young people who cannot afford even these shoeboxes has helped fuel protests.

Carrie Lam, chief executive of the territory, announced reforms this week. Paradoxically, the reforms will mainly benefit the tycoons who have a stranglehold on the costliest residential market.

Amid-range two-bedroomflat costs about $3,700 per sq ft compared with $2,900 in New York and $2,300 in London, according to Deutsche Bank.

The alternative, public housing, is scarce and can take Hong Kongers five years to find. Ordinary people are crammed into tower blocks. The elite live in lux pads on The Peak.

The government would, meanwhile, relax mortgage borrowing limits for first-time buyers, after eight years of curbs. Homes prices would rise.

Subsidies for home seekers on public housing waiting lists would push up private rents. The price bubble could take years to deflate. Most of the 7m sqm of farmland Mrs Lam wants to buy is owned by the tycoons. These assets are illiquid until they are rezoned. The government buying plan would allow the property companies to cash out.

Shares in the largest developers— Henderson Land, CK Asset, SunHung Kai and NewWorld Development— have risen, but still trade at a discount.

They could rebound further. For now it seems that the best bet for a Hong Konger to get closer to affording a home is to invest in the city’s developers. Bolder reformis needed.


Cost of living in Hong Kong, in USD.

1 bedroom flat in city centre (monthly rent) — 2 121 USD.
Lunch for 2 (3 courses, mid range restaurant) — 44,80 USD.
Transportation (monthly pass) — 58,90 USD.

Hong Kong’s official name is the Hong Kong Special Administrative Region, or Hong Kong SAR.

Hong Kong means Fragrant (благоухающий, ароматный) Harbor.

Hong Kong consists of Hong Kong Island, Kowloon, the New Territories, and several other smaller islands spread over 1,092 square kilometers. Moscow is about 2,550 square kilometers. Population is 7,40 million people. Moscow is 12,50 million.

Hong Kong’s official languages are Chinese (Spoken Cantonese) and English.

Hong Kong has more Rolls Royce’s per person than any other city in the world.

Hong Kong has the most skyscrapers (classified as building with more than 14 floors) in the world; double that of its nearest rival: New York City.

Hong Kong is counted amongst the most densely populated areas of the world.

Hong Kong was taken over by the British forces after the defeat of China in the Opium War of 1842. On July 1st, 1997, Hong Kong became a Special Administrative Region of China.