The Hong Kong government has recently implemented policies targeting well-off tenants to ensure more effective use of public housing resources. Reports indicate that the Housing Authority's Subsidised Housing Committee will review the tightening of the "well-off tenants policy" and examine its implementation details today (March 21).
The proposal includes significant increases in rent for well-off tenants, with those earning four to five times above the income limit facing the largest hikes, as their rent will rise from twice the standard rate to 4.5 times. The government will allow these ultra-well-off tenants to retain their eligibility for a four-year lottery for Green Form Subsidised Home Ownership Scheme, but those who do not win need to vacate.
The new policy is expected to generate an additional HK$1.5 billion annually for the Housing Authority.
Four-Tier Rent Policy
The Housing Authority plans to implement a four-tier rent system. Households that do not exceed the income limit will continue to pay the original rent; however, those classified as wealthy tenants in the second to fourth tiers will see their rent adjusted from the current 1.5 to 2 times the standard rate to 2.5, 3.5, and 4.5 times, resulting in increases of 67% to 125%.
- Households earning between 2 and 3 times the income limit: Rent will increase from 1.5 times to 2.5 times, a 67% increase.
- Households earning between 3 and 4 times the income limit: Rent will rise to 3.5 times, a 75% increase from the current 2 times.
- Households earning between 4 and 5 times the income limit: Rent will increase from 2 times to 4.5 times, a 125% increase. For example, if a household currently pays HK$2,000 in double rent, this will change to HK$4,500.
Eviction Regulations
The regulation requiring ultra-well-off tenants with incomes exceeding five times the limit to vacate will remain in place. The new plan will also allow these ultra-well-off tenants to retain their lottery eligibility for four years in Green Form housing, after which they must vacate if they do not win. Additionally, a new "eviction tier" will be introduced, stating that public housing tenants who exceed four times the income limit but do not surpass five times during two reporting periods (every two years, totaling four years) must also vacate, affecting approximately 1,200 households.
The government estimates that with these tighter regulations, the proportion of rent relative to the average total income of wealthy households will rise to 11%, up from about 7% currently.
According to government statistics, there are currently about 42,000 public housing households classified as wealthy tenants due to their incomes exceeding two to five times the limit, accounting for about 5% of all households. Of these, 36,000 pay 1.5 times the rent, around 6,000 pay 2 times the rent, and about 200 households earn over five times the limit but have not yet vacated, currently paying market rent.
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