RICS Response to Hong Kong 2024 Policy Address

Hong Kong’s Chief Executive John Lee announced his third policy address on 16 October, highlighting several areas of reforms to achieve prosperity. As RICS Hong Kong Advisory Board Interim Chair FC Lee MRICS said: “We welcome and strongly support the CE's Policy Address for the reform to enhance development of Hong Kong and build our bright future together.”

Here is our response to the policy address:

Improving People's Livelihood – Housing Issues

The decision to phase out subdivided flats smaller than eight square meters represents a significant step towards in improving living standards in Hong Kong. By ensuring these residences include essential amenities, the city is prioritizing the well-being of its residents. This initiative could benefit from examining successful housing policies in other countries, such as the Houses in Multiple Occupation (HMO) regulations in the UK, which have effectively enhanced living conditions and safety standards in comparable housing contexts. RICS Surveyors can also provide relevant professional certification services to assist the government in implementing these new measures and ensuring residents live in compliant environments.

We strongly support the relaxation of the maximum loan-to-value ratios for property mortgage loans. As Hong Kong operates within a free-market economy, private housing prices naturally adjust according to supply and demand. Easing mortgage limits can facilitate home ownership for residents while also attracting overseas investors.

The government’s policy address could benefit from greater attention to supporting private development. For example, the government could explore ways to leverage private developers' capital and capabilities to assist with planning, enhance the private market environment, and consider increasing gross floor area (GFA) to improve the attractiveness of private developments. This approach could effectively utilize new private housing estates to address housing needs and enhance land sale revenues, ultimately boosting fiscal income.

Improving People's Livelihood – Building a Caring and Inclusive Society

We strongly support the emphasis on caring for diverse age groups, particularly the elderly. We welcome the government's initiative to subsidize elderly recipients of the Comprehensive Social Security Assistance (CSSA) to reside in residential care homes for the elderly (RCHEs) in Guangdong Province to address elder care issues. Simultaneously, we propose exploring pilot programs in Hong Kong to develop the elderly care market. Developers could collaborate to build various standards of elderly homes to cater to different needs. Establishing these facilities in Hong Kong would facilitate visits for families and stimulate the local economy.

Northern Metropolis

We are pleased that the government will expedite the implementation of economic and housing-related projects in the Northern Metropolis. Over the next ten years, more than 200,000 housing units are expected to be built, potentially accommodating over 500,000 residents. This initiative not only helps address part of Hong Kong’s housing crisis but also drives the development of the entire Northern Metropolis. However, it is crucial to consider long-term population distribution plans and cost control for large-scale housing projects.

Developing New Quality Productive Forces

The new InnoHK research cluster will concentrate on advanced manufacturing, materials, energy, and sustainable development. This focus aligns with global trends towards sustainability and innovation, providing a fertile ground for the construction industry to adopt new technologies and practices that enhance efficiency and reduce environmental impact.

The government's initiative to develop a highly effective, intelligent, and digitalized low-altitude infrastructure system is indeed a forward-thinking approach that offers numerous opportunities for the construction industry. The expansion of low-altitude infrastructure will generate increased demand for construction services, leading to new projects and job opportunities. This initiative not only aims to modernize infrastructure but also positions the construction industry for growth and innovation in a rapidly evolving technological landscape. Embracing these changes will be crucial for industry participants looking to thrive in this new environment.

The establishment of the Working Group on Developing the Low-Altitude Economy will bring new opportunities. In Hong Kong, we face many challenges related to aging buildings and maintenance. Exploring the application of drones can assist in building inspections, and with the certification of professional surveyors, this can expedite repairs and reduce disputes related to building maintenance.

Nurture Future Talents and Establish the "Study in Hong Kong" Brand

We strongly support the emphasis to establish the "Study in Hong Kong" brand, as this is crucial to enlarge of talent pool of the built environment. With policy support, RICS believes that Hong Kong could serve as an international education and training hub in providing post-secondary education for students and practitioners interested in surveying, construction, sustainability development and more.

We welcome the pilot scheme to streamline the processing of applications in relation to planning, lands and building plans, so as to encourage the conversion of hotels and other commercial buildings into student hostels. If the Government could set KPIs for the pilot scheme, it would demonstrate the administration's commitment and determination to provide adequate accommodation for students. It will also increase the appeal for advanced education graduates and talents to live and work in Hong Kong.

Build a Caring and Inclusive Society

RICS strongly agrees with the emphasize of inclusion to the society. The initiative to “She Inspires” with certainly help women in their workplace development.

Promote Occupational Safety and Health

Occupational Safety and Health is very important to the built industry. With the adoption of the Smart Site Safety System we can strengthen the protection to the on-site workers. We support this initiative and the involvement of technology in this area.

RICS Hong Kong Advisory Board Member Dr Lesly Lam said: “The Policy enhancement listed on the policy address will help Hong Kong’s talent trawl and economy growth.”

RICS Hong Kong Member Engagement Group chair Alan Choi said:” The Hong Kong Policy Address 2024 induces plan to improve people’s livelihood on housing issues, build a caring and inclusive society and enrich its talent pool to enhance overall attractive.

The government's initiative to develop a highly effective, intelligent, and digitalized low-altitude infrastructure system is indeed a forward-thinking approach that offers numerous opportunities for the construction industry.”

RICS look forward to work with the HKSAR government in the built environment to enhance development of Hong Kong and build our bright future together.

Acknowledgements:

• FC Lee MRICS, Interim Chair of RICS Hong Kong Advisory Board
• Lesly Lam MRICS, member of RICS Hong Kong Advisory Board
• Alan Choi MRICS, Chair of RICS Hong Kong Member Engagement Group
• Leo Yuen MRICS, Vice-chair of RICS Hong Kong Member Engagement Group
• RICS Hong Kong Member Engagement Group