OPENING THE BESIEGED CITY Exploring an inclusive development strategy for Tin Shui Wai in Hong Kong

1. OPENING THE BESIEGED CITY
Exploring an Inclusive Development Strategy for Tin Shui Wai in Hong Kong
Photograph of Tin Shui Wai in Hong Kong (by HKAVMODE)
Graduation Thesis Plan / Jing Feng / 4122623 /
Complex Cities Studio / Department of Urbanism / TU Delft / 01/2012

2. COLOPHON
OPENING THE BESIEGED CITY
Exploring an Inclusive Development Strategy for Tin Shui Wai in Hong Kong
GRADUATION THESIS PLAN
Jing Feng
4122623
E-mail: fengjing1618@gmail.com
First Mentor: QU Lei (Complex Cities)
Second Mentor: Gregory Bracken (DSD)
Complex Cities Studio
Department of Urbanism
Faculty of Architecture TU Delft
Cover: Photograph of Tin Shui Wai in Hong Kong (by HKAVMODE)
Date: 01/2012

3. Content
1. Introduction 1
2. Problem Statement 2
2.1 Hong Kong - Location 2
2.2 Hong Kong - Economy and Social Inequality 4
2.3 Hong Kong - Housing Problem 6
2.4 Public Housing in Hong Kong 10
2.5 Conclusion 23
3. Project Area - Tin Shui Wai 24
3.1 Besieged city 24
3.2 From ‘Besieged city’ to the ‘City of Misery’ 30
4. Project Objective 32
5. Research question 34
6. Methodology 35
7. Final Product 38
8. Relevance 38
9. Literature Review 40
10. Vision 48
10.1 Regional scale 48
10.2 WNT scale 58
10.3 TSW scale 74
11. Reference 92

5. 1. Introduction
A single mother lived with his son in Tin Shui Wai, a place called ‘Besieged City’ in Hong Kong. She worked in a local supermarket now. But, in
the 1970s, she worked in a textile factory and supported her little brothers finishing their studies. With the dramatic socio-economic changes,
now she had a hard life compared to her brothers. One day, she met a single living granny and helped her repairing television and changing
the lamp. Then, it comes to the mid-autumn day, a special festival for Chinese family gathering together. So, the single mother, the son and the
granny sitting together around the table, tasting the mooncake, watching the beautiful moon outside, and thinking about the past and future.
This is the simple but powerful and touching story in a movie called ‘The Way We Are’ by Ann Hui (fig.1). Tin Shui Wai, the so called ‘Besieged
City’ in Hong Kong would be the study area of my graduation project. Tin Shui Wai is a place where public housing gathered, with many socio-
spatial problems happening in recent years, the ‘Besieged City’ has became the ‘City of Misery’. So, my graduation project would explore an
inclusive development strategy to open the ‘Besieged City’.
Fig. 1: Film shots from the movie ‘The way we are’. source: Google Image 1

6. NEW TERRITORIES
Hong Kong Special Administrative Region of China (HKSAR)
IMPRESSION: Trade Port & International Financial Metropolis
KOWLOON
AREA: 1,104 km2 ( less than 25% of land developed)
POPULATION: 7.1 million population (2010)
LANTAU ISLAND HONG KONG ISLAND
POLITICAL SYSTEM: ‘one country, two systems’ policy since 1997
Fig. 3: The territory map of Hong Kong (left) shows Hong Kong consists of four parts:
Hong Kong Island, Kowloon, New Territory and Lantau Island
10Km
General information of Hong Kong (right), source: Gov HK, 2011
Shaogua n
梅州
Meizho u
河源 潮州
Qingyuan Heyuan Chaozhou
Jieyan g Shen Zhen
¶¬¿Y Shantou
Guangzhou
Zhaoqing • • • 惠州 Huizhou
佛山 Foshan • • Dongguan 汕尾 Shanwei
Yunfu
中山 Zhongshan • • 深圳 Shenzhen
Jiangmen •
珠海 Zhuhai • • 香港 Hong Kong Hong Kong
• Macao
茂名 Yangjiang
Maomin g
湛江
Zhanjian g
Pearl River Delt a region 10km
Hong Kong 0 10 50 100km
Fig. 5: The location of Hong Kong on different scales, from China (Left) to Greater Pearl River Delta region and PRD region (middle), then to Hong Kong -Shen Zhen (right).
2

7. 2. Problem Statement
Fig. 2: Hong Kong Skyline, source: google image,2011
2.1 Hong Kong - Location
Hong Kong is an important trade port and one of the leading
international financial metropolis (fig.2), as well as a Special Ad-
ministrative Region (HKSAR) (fig.3) in the south of China with ‘one
country, two systems’ policy after the British-colony period. If com- Hong Kong Randstad
pared the size of Hong Kong and Randstad (fig.4), it is obvious to
found out that the population density of Hong Kong is extremely AREA: 1,104 km2 8,287 km2
high, with almost the same amount of population living on 1/7 of POPULATION: 7.1 million 7.5 million
the size of land.
After returning to China from Britain in 1997, the mainland China
has become the most significant trading partner of Hong Kong. As a
result, Hong Kong emphasized more and more economic develop-
ment inside the Pearl River Delta (PRD) region in the past decades.
Hong Kong would have more intense links inside the Greater PRD
Region (fig.5) in the coming decades in the context of the evolu-
tion of the PRD Region as a multi-centred city-region, especially
focusing on the cooperation between Hong Kong and Shen Zhen
(HK 2030, 2009).
Fig. 4: Hong Kong and Randstad comparison 3

8. GDP
25,000
2,000,000
1,800,000
20,000 20,027
1,600,000
18,622 18,586
17,909
1,400,000
1,200,000 15,000 14,630
1,000,000 Cleaner
GDP
10,950
10,482
800,000 10,000 9,699 9,509 General worker
9,000
8,384
600,000 7,770 7,918
7,276 7,495
6,175
5,394 5,633
400,000 5,000 4,831 4,502 4,453
3,643 3,909
200,000 3,585
0 0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1990 1995 2000 2005 2010 2011
Fig. 7: Hong Kong GDP and Average salaries improvement 1990-2010,they showd that the GDP of HK doubled but the income of low class people hasn’t changed too much. Source: Censtatd HK, Made by T. Wen from DSD AT studio, 2011
Poverty Population Poverty Rate in Hong Ko 2001-2010 1st half
and ng,
1300 18.1% 18.2% Average Monthly Household Expenditure (HK$)
18.0%
17.8%
lation (1000)
1,260.0
1260 17.8% Sec on 9 : Miscellaneous services
pove rate%
17.6% Sec on 8 : Transport
Sec on 7 : Miscellaneous goods
pove popu
1220 17.4%
rty
17.2%
Sec on 6 : Durable goods
1,186.6 17.2%
rty
Sec on 5 : Clothing and footwear
1180 17.0%
1,160.7 Sec on 4 : Alcoholic drinks and tobacco
16.8% Sec on 3 : Electricity, gas and water
1140 16.6% Sec on 2 : Housing
Sec on 1 : Food
02
04
05
06
08
01
03
07
09
alf
20
20
20
20
20
20
20
20
20
th
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
1s
10
poverty population poverty rat
e
20
Fig. 8: Poverty population and poverty rate in Hong Kong 2001-2010 1st half, source: HKCSS, 2010 Fig. 9: Average monthly household expenditure shows Housing cost the most for HK residents
Source: Censtatd HK, Made by T. Wen from DSD AT studio, 2011
4

9. 2. Problem Statement
Fig. 6: Comparison of Economy and Social Inequality in Hong Kong (top)
2.2 Hong Kong - Economy and Social Inequality Hong Kong tops world rich-poor gap (bottom), source: Cagape, 2009
Hong Kong is well known for the freest economy and low-tax Economy
shopping heaven with dense skyscrapers, however, the glass cur- GDP per capita: HK$246,677 (2010) (13th in the world) (CIA, 2011)
tain walls not only reflect the dazzling modern life, but also conceal Free trade, Low taxation & Minimum government intervention
the hard life of many common people. The sharp comparison is The world’s freest, most competitive & service-oriented economy(Gov HK,2011)
shown in the diagram of Economy and Social Inequality (fig.6).
Social Inequality
Hong Kong tops World rich-poor gap (Cagape, 2009)
The GDP of Hong Kong doubled in the last two decades, however,
the income of low class people hasn’t changed too much (fig.7). 1,260,000 people live in poverty (18% of population)
For example, the average salary of a administrative supervisor in- 210,000 people live in inadequate housing
creased by 11,000 HK$, and the average salary increased by 4,000 100,000 households live in cagehome, cocklofts & cubicles (SoCO, 2010)
HK$ for a general worker, but for a cleaner, it only increased by
2,000 HK$. In 2009, Hong Kong tops world rich-poor gap (fig.6). The
number of population live in poverty increased from 1,186,600 in
2001 to 1,260,000 in 2010 which covers 18.1% of total population
(fig.8).
Hong Kong, as one of the so-called global cities of finance and com-
mand functions has become a spectacular island of wealth and
privilege, especially speculative urban property market has be-
come prime engines of capital accumulation (Harvey, 2005,p.157).
The ever-growing housing price pushes the city to the top of the
ranking list in property assets and rental fee in the world (Savills,
2011). As a result, housing cost covers the largest part of household
expenditure (fig.9) and gradually becomes the heaviest burden on
the shoulders of common people in Hong Kong.
5

10. a
b c
6
Fig. 10: Inadequate housing in Hong Kong, cubicle housing (a) and cage home (b) in Sham Shui Po (c) in the city center of HK. source: (a) and (b) from SOCo,2011

11. 2. Problem Statement
Fig.11.Protest in Hong Kong 2011, the signs said ‘we need more public housing’, ‘the real estate corporations are controlling HK and HK will die’, etc. source: Oriental Daily,2011
2.3 Hong Kong - Housing Problem
For Hong Kong, Housing has always been one of the most crucial
problems along the urbanization process. Because of lacking af-
fordable housing in the property market for majority of inhabitants
in Hong Kong, many people turned to public housing. However,
public housing stock is far from the demand. That is the result of
changes of public housing policy which will be illustrated in detail
in next chapter. Moreover, there are about 210,000 people live in
inadequate housing, and 100,000 households live in cage home,
cocklofts and cubicles (fig.10)(SoCO, 2010). So, people demonstrat-
ed on the street (fig.11), complaining that the government helps
the real estate developer killing people. On 14 Oct 2011, the chief
executive (fig.12) said housing solutions would be the first priority
in the coming government policies.
The current housing problems is the outcome of complicated rela-
tionships among the government (both colonial government and
HKSAR government), property market, developers and urbanists. Fig. 12: Regonal Consultation Forum in Hong Kong, the Chief Executive noted that the
Their positions and relations changed in different periods of socio- housing solution would be the first priority in the coming government policies
source: Gov HK,2011
economic development. It is not possible to illustrate the compli-
cated relationships through the whole history in detail, however a
general understanding of land use and the relation between land
sale and property market would help to understand the current
housing problem.
7
1

12. Bodies
Land
ure
cial
Agricult
Barren
Water
mer
l
tria
n/
Com
io ce
us
ut Spa
Ind
it
st n
In pe
O
tion
sp orta
Tran
an or
Other Urb nd
Built-up La
Residential
W
Sh ood
Gra rubl land/
We ssla and/
tla nd
nd /
2. 31 Land Use
Class Area (sq.km) Currently, only less than 25% of the land has been developed and
Residential 72
Commercial
Industrial
4
26
40% of the land is preserved as country parks and nature reserves (Gov
Institution/Open Space
Transportation
49
66 HK, 2011). The land for residential use is only 72 km2 (fig.13). Because
Other Urban or Built-up Land 52
Agriculture
Woodland/Shrubland/Grassland/Wetland
68
740
of the hilly terrain (fig.14), the solution to get more land is by terracing
Barren Land
Water Bodies
7
30 of hillslopes, reclamation of land from the sea and conversion of flat
TOTAL 1108
agricultural land (Pun, 1987:41), so land is precious and extremely ex-
Fig. 13: Hong Kong Land usage distribution in 2010, Based on source: Pland HK,2010 pensive in Hong Kong. As a result, most buildings in Hong Kong follows
closely to the height limitation in order to make full use of the value
of the land.
Since 1970s, development of nine new towns (fig.15) changed a large
number of rural land into urban land. The aim of new town was to
release the population pressure in city center with the concept of self-
sufficient development. However, the principal impetus behind new
town construction was public housing programme (Pun, 1987:42).
2.32 Land sale and Property market
‘ Virtually all land in Hong Kong is leased or otherwise held from the
Government of the HKSAR’ (Landsd HK, 2005). The Land Tenure System
followed the British rule before returning to China. Now, the new lease
of land is granted for a term of 50 years (Landsd HK, 2005). Since 1855
when the colonial government was asked to earn money by them-
selves, land sale has been an important revenue for the government.
Later, land sale was closely connected with the boom of property mar-
Fig. 14: Hong Kong territory condition ket which was called ‘land (re)development regime’ (Tang,2008).
8

13. 2. Problem Statement
New Town
Design
Urbanist
Fanling/
Public Housing
Sheung Shui
Tin Shui Tai Po Housing
Intervention
Wai Yuen
Long
demand
Government
Economy
Tuen growth
Market
Mun Sha Tin
Tsuen Wan
Revenue
complicated system with business cycle
Tseung
Kwan O
Land sale Agreement
Tung Stock Property
Chung
1973 New Town Plan
market market Land
control
1979 New Town Plan
1980s New Town Plan
Investment Real Estate
0 10km Developer
Fig. 17: Housing problem relation scheme
Fig. 15: New Town development in HK, Based on source: HK Pland
1980 1985 1990 1995 2000 2005 2010
Since 1968, property market was bound with stock market, the re-
lationship between property market and land sale became more 200
complicated and difficult to handle (Deng, 2008). Many Chinese- 180
160
funded enterprises emerged and defeated foreign-funded enter- 140
prises in this period mainly because of the development of proper-
120
100
ty market. Some big Chinese-funded enterprises later monopolized 80
60
the property market and became the dominant power of Hong 40
Kong economy. Housing price in property market changed dramati- Property market
20
0
cally based on the land sale change by the government (fig.16).
As shown in the diagram (fig.17), on the one hand, the colonial
government, due to subtle political reasons, didn’t want to disturb 1,000,000 925,039
the prospering property market to gloom the future of Hong Kong, 750,000
so the government and developer reached some agreement for 500,000
profit; on the other hand, the property bubble was expanding day 250,000 174,427
by day, so, public housing became a tool of government interven-
0 (m2)
tion to the property market. Land Auction Area
Reviewing the public housing policy changes in the context of spe-
cific socio-economic condition would help to clarify the complicat-
ed urbanization process and understand the causality of housing 60,000
51,244.48
problems. 45,000
32,349.67
30,000
15,000
0 (million HK$)
Land Auction Premium
Fig. 16: Top: Housing price change in property market 1980-2011, source: Zarathustra,2011
Middle: Land Auction Area 1985-2011, Bottom: Land Auction Premium1985-2011, source: Landsd HK,2011
9

14. Fig. 21: Abercrombie Report 1948, Source: Sit, 2001
Hong Kong
Urban settlement
Main port
CBD
Road
Rail line
0 10km
Fig. 22: Urban development till 1954 Based on Source: Shelton, Karakiewicz & Kvan 2011; Leung 1971
10

15. 2. Problem Statement
Fig. 20: Victoria City of Hong Kong, Source: Google Image Fig. 23: Squatters of Tiu Keng Kowloon in 1952, Source: Google Image
2.4 Public Housing in Hong Kong
2.41 History
Public housing was constructed after the Shek Kip Mei squatter
fire (fig.18) on Christmas Eve 1953. Since then, a series public hous-
ing policy and construction came out through the urban develop-
ment history. A detail illustration of socio-economic condition, ur-
ban plan and public housing development would be shown based
on five stages of housing policy development (Yung, 2007,p.125)
as follows:
Fig. 18: Shek Kei Mei squatter settlement Fire (left), Fire victims after the fire (right), Source: Google Image
1) Pre-1954 (fig.19):
Socio-economic condition
During this period, Hong Kong was mainly a transit port. The main urban
development was Victoria city as the CBD of Hong Kong (fig.20). At the WW II, China civil war
same period, many migrants from China mainland poured to Hong Kong
because of WW II and China Civil War. So, urban squatting became a vexing Transit port
issue (Dwyer 1970,p.609)
Urban Plan
In 1948, Abercrombie made an urban plan (fig.21) for Hong Kong govern- No government intervention in housing
ment. It suggested a large area of new residential zones in New Territory.
But the plan was not fulfilled at last. The urban development area till 1954 Squatter Low-income social/political event
economy condition
is shown in Fig.22. & migrant housing policy
Public Housing housing type
target group
There was no government intervention in housing, many people including Housing Society Housing middle institution
migrants lived in squatters on the peripheral of the city (fig.23). ‘However, civil organization supported by government assistance income market
purpose
the government gave limited and indirect housing assistance to the low-
er-middle- and middle-income households through the Housing Society’
(Yung, 2007,p.117) Fig. 19: Socio-economic condition,Public housing policy & Housing relations Scheme till 1954
11

16. Hong Kong
Urban settlement
Production industry
Main port
CBD
Road
Rail line
Development area in Tsuen Wan
0 10km Reclamation area in Kwun Tong
Fig. 26: Urban development and new industry area till 1972, Fig. 27: Reclamation 1946-1967 in Kwun Tong, Source: Ling,2011;
Based on Source: Shelton, Karakiewicz & Kvan, 2011; Dawyer, 1971 Tsuen Wan district outline development plan in 1963, Source: Bristow,1989
PRH/TPS Estates
HOS/PSPS Courts
Shopping Centers
Main port
CBD
Industrial area
Road
0 10km
Rail line
Fig. 29: Public housing distribution in HK 1954-1972, Based on Source: HA, 2011
12

17. 2. Problem Statement
Fig. 25: Factory Estate in Kwun Tung, Source: Hong Kong Place; Fig. 28: Lok Fu Resettlement housing in 1966 in Wong Tai Sin District of Kowloon, Source: Google Image
2) 1954-1972 (fig.24):
Socio-economic condition Culture Revolution in China
In this period, Hong Kong became an export-oriented light industrial city Social roits
with new industrial areas (fig.25). The small business, from textile and
clothing industry later to electronic industry greatly prospered the econ- Export-oriented light industrial city
omy condition in Hong Kong. On the social aspect, the Culture Revolution Small business:
happened in China mainland influenced the atmosphere in Hong Kong. Textile & Closing industry
Some social riots against colonial government happened. Electronic industry
Urban Plan
Since 1954, Kwun Tong developed as a satellite town with new industrial resettlement programme
areas (fig.26). In 1963, an outline plan was made to develop Tsuen Wan low-cost housing programme
district (fig.27). In 1969, ‘Colony Outline Plan’ was made with five recom-
mended plans of new town development, still giving priority to Tsuen Wan Fire
district. resettlement
Public Housing Colonial
Because of the Shek Kip Mei fire, fire resettlements were built up for fire welfare state Squatter residents of
victims. However, the primary reason for fire resettlement was not home- resettlement planned area
less but economic. The relief cost for fire victims was the same amount Clear land for
with the cost to build a six-storey resettlement block (Drakakis-Smith 1979 development
in Yung 2007). So, public housing could be considered as an accidental out-
come of an accidental fire. Later, ‘because the community can no longer
afford to carry the fire risk, health risk and threat to public order and public Single/ Twin tower Slab
prestige which squatter areas present’(Lai 1994,p.190-191), squatter re- social/political event
settlements with low-cost housing program (fig.28) were built up. Moreo- economy condition
housing policy
ver, the government wanted to clear land for urban development, so only
housing type
squatters occupying land urgently needed for planned development were target group
resettled (Yung, 2007,p.118). So, in this period, the resettlement was institution
market
mainly for urban development especially new industrial areas (fig.29) in purpose
order to keep social stability and economic growth.
Fig. 24: Socio-economic condition,Public housing policy, Housing relations & Public housing typology Scheme
1954-1972, Housing typology Source: Studio RE,2009
13

18. Hong Kong
Retail & Catering
Production industry
Main port
CBD
Highway
Rail line
MTR line Base Growth Areas (existing & committed development)
Strategic Growth Areas
0 10km Other Potential Growth Areas
New Highway
New Railway
Fig. 33: New town development with new industry area till 1987, Based on Source: HK Place,2011 Fig. 32: Territorial Development Strategy (1984), Based on Source: Ling,2011
PRH/TPS Estates
HOS/PSPS Courts
Shopping Centers
existing
new town
Highway 0 10km
Rail line
MTR line
Fig. 35: Public housing distribution in HK 1972-1987, Based on Source: HA, 2011
14

19. 2. Problem Statement
Fig. 31: Chai Wan Kok industrial area in Tsuen Wan, Source: Google Image Fig. 34: Low-cost rent home plan Kowloon, Source: Google Image
3) 1973-1986 (fig.30) : New colonial governor
Socio-economic condition Social Riots
During this period, diverse industry appeared in Hong Kong. Because of
the Open Door Policy in China in 1978, labour intensive industry moved 1978: Open Door Policy in China
towards north and finally to PRD region in mainland China. The dominant Diverse industry in HK:
force was technology intensive industry in new town areas (fig.31) and the Labour intensive industry
emerging financial industry in the existing CBD area. Technology intensive industry
Financial industry
Urban Plan
The New Town Programme, which complemented the Ten-year Housing Ten-year Housing Programme
Programme, was embarked on in 1973 (Pun, 1987,p.46). In 1984, ‘Territo- HOS Home Ownership Scheme
rial Development Strategy’ (fig.32) was made which mainly focused on the Private Sector Participation Scheme
development of new town area with both residential and industrial use
within the territory of Hong Kong (fig.33). However, due to the economic Colonial Public Rental Working class
change, many industrial land use were changed to office and other use welfare state Housing
later.
Public Housing
With the aim to stabilize social riots and promote economic growth, the Economic Growth Industrialization
colonial welfare state (Castells,2010,p.278) with a new governor started
Social stability development
Ten-year Housing Program (fig.34) for the working class. In 1978, Home Slab Cruciform
Ownership Scheme started the privatization process of public housing. Till
this period, the public housing were mainly built up next to industrial areas
Single/ Twin tower Linear
(fig.35) to support industry growth, so working class benefited from these
housing policies. Government’s intervention to housing was releasing the social/political event
pressure of industry owners. economy condition
housing policy
H Y housing type
target group
institution
market
purpose
Fig. 30: Socio-economic condition,Public housing policy, Housing relations & Public housing typology Scheme
1973-1986, Housing typology Source: Studio RE,2009
15

20. Yantian
Shen Zhen Shen Zhen
Shekou
Tin Shui Wai
Au Tau - Kam Tin
Tuen Mun West
Hung Shui Kiu
Tsuen Wan/Kwai Tsing
l
ne
an
Ch
ter
Wa
gu
ng
To
Chek Lap Kok Airport
North Lantau Port
Kowloon
Central Metro
East Lantau
Hong Kong
Shen Zhen
Retail & Catering
Rezoned industry for other use
Production industry
Main port
CBD Key activity node
Highway Possible new activity node
Rail line Mayor port facilities
MTR line 0 10km Port back up uses
Strategic growth area
Exising/planned transport corridor
Possible new transport corridor
Possible new marine channel
Fig. 37: Rezoned industry area till 2002, Based on Source: Pland HK, 2006 Fig. 39: Territorial Development Strategy Review (1996), Based on Source: Ling,2011
Shen Zhen
PRH/TPS Estates
HOS/PSPS Courts
Shopping Centers
existing
new town
Highway
Rail line
MTR line
0 10km
Fig. 41: Public housing distribution in HK 1987-2002, Based on Source: HA, 2011
16

21. 2. Problem Statement
Fig. 38: Office Building of Millennium City in Kwun Tung, Source: Millennium City Fig. 40: Home Ownership Scheme Housing, Source: Google Image
4) 1987-2002 (fig.36):
Socio-economic condition
China British agreement
In 1984, the agreement between China and British government cleared Hong Kong return China
the rumors of the future of Hong Kong. This gave confidence to the econ- Asian Economic Crisis
omy development. Hong Kong as one of the Four Asian Tigers, became
one of the leading international financial centers in the 1980s. Most of
International Financial Center
the production industry has moved to PRD region. This resulted in a large
Decrease of production industry
number of rezoned industrial area (fig.37). Many industrial areas turned to Property and Tourism industry
office and other business areas (fig.38). But, the property market boomed The Long Term Housing Strategy
till 1997, when the Asian Financial Crisis happened after Hong Kong re-
turned to China.
SCHS/ FFSS/ BRO/ TPS/ MSS
Urban Plan
Public Rental Low Speculation
In 1996, ‘Territorial Development Strategy Review’ (fig.39) was published. Housing
Housing income
The most important part of this plan was putting Shen Zhen into the mas-
Authority Property
terplan. Though connections between Shen Zhen and Hong Kong increased Subdisized Middle bubble
since 1978, the government realized the importance of those connections Government housing sale income negative equity
till the 1990s.
Public Housing Controlled Private High
On the one hand, government controlled land sale for high revenue, which land sale Real estate housing income
indirectly raised the private housing price. On the other hand, Housing Au- High revenue
thority provided Public Rental Housing to low-income People and subsi- income
dized housing sale to middle income people with Home Ownership Scheme
Harmony Slab
(fig.40). This government intervention into property market couldn’t cool
the over heated proper market. Speculation of housing happened not only social/political event
in private housing but also in public housing. Property bubble began to Y Linear
economy condition
housing policy
expand till the Asian Economic Crisis in 1997, making hundreds of people
housing type
became negative equity. During this period, the process of privatization of target group
public housing sped up with a huge number of construction all over the institution
market
territory (fig.41). purpose
Fig. 36: Socio-economic condition,Public housing policy, Housing relations & Public housing typology Scheme
1987-2002, Housing typology Source: Studio RE,2009
17

22. Bao’An
Shen Zhen Luo Hu
Shen Zhen
Nan Shan
Fu Tian
She Kou
Tai Po
Industrial Estate
Yuen Long
Industrial Estate
Hong Kong
Science Park
Innovation
Centre
Tseung Kwan O
Industrial Estate
Schematic Spatial Concepts
Hong Kong Metro core
Shen Zhen Northern development axis
Retail & Catering Southern development axis
Production industry Central development axis
Main port Regional transport corridor
CBD Recommended development pattern
Highway New development area (mixed use)
MTR line Reinforcement area (residential)
Cross boundary way Reinforcement area (non-residential)
24 hour Cross boundary buses 0 10km Possible strategic highway by 2030
Border crossing point Possible railway line by 2030
Fig. 43: New industry area distribution till 2011, Based on Source: HKSTRC,2011 Fig. 45: HK 2030 recommended development pattern (2007), Based on Source: HK 2030,2009
Shen Zhen
PRH/TPS Estates
HOS/PSPS Courts
Shopping Centers
existing
new town
Highway
MTR line
Cross boundary way 0 10km
24 hour Cross boundary buses
Border crossing point
Fig. 46: Public housing distribution in HK 2002-2011, Based on Source: HA, 2011
18

23. 2. Problem Statement
Fig. 44: Hong Kong Science Park, Source: Google Image Fig. 47: Low-cost rent home plan Kowloon, Source: Google Image
5) 2002-2011 (fig.42):
Socio-economic condition
Now, the main economic sector of Hong Kong is financial service, Trading and logis-
Cooperation with PRD region
tics, tourism and producer and professional service (Gov HK, 2011). In this period, International Financial Center
on the PRD regional scale, Hong Kong - Shen Zhen city region is expected to be one Financial services
of the three main cores. In Hong Kong, the main industrial estates (fig.43) focus on Trading and logistics
new technology and innovation industry (fig.44). The CBD area expands through Tourism
the renewal of city center and provides a large number of service employments,
Producer & professional services
from the highest level like administrative executive to the lowest level like cleaners.
Urban Plan Big market small government
Infrastructure is well constructed till this moment, especially the efficiency MTR
system has reached most part of urban settlement. In 2007, ‘Hong Kong 2030’
Housing Public Rental Low
was published. ‘Hong Kong 2030’ suggested more links within the Greater PRD Authority Housing income
Government
region, especially cooperation with Shen Zhen. The recommended development
pattern (fig.45) focusing on three axes development: 1). Metro Development Core: Supply Real estate Private High
land housing income
Intensive commercial/business zones and housinfor urban-style living; 2).Central
Development Axis: Community-type housing and education/knowledge-building
High revenue Boost High
facilities; 3).Southern Development Axis: Logistics and major tourism facilities; property price
income housing price
4).Northern Development Axis: Non-intensive technology and business zones and
other uses that capitalise on the strategic advantage of the boundary location. (HK
2030, 2009) social/political event
economy condition
Public Housing housing policy
After the financial crisis in 1997, housing price continued decreasing till 2003. Gov- Concord
housing type
ernment decided to free the property market in order to boost property price. target group
institution
Housing policy changed to Big Market Small Government (HK 2030, 2009), which market
purpose
means that the government only focused on supplying land for developers and
providing public rental housing only for low-income people. From this period on,
public housing is still in construction (fig.46) in large amount in new towns (fig.47).
However, it has detached from economic growth, but becomes a social burden. So, Fig. 36: Socio-economic condition,Public housing policy, Housing relations &
a new ideology of public housing forms in Hong Kong, together with new problems. Public housing typology Scheme 2002-2011, Housing typology Source: Studio RE,2009
19

24. Housing type in Hong Kong (Domestic Households, total 2,343,000 in 2011)
Public Temporary Housing (0%) Rental Flats (30.8%)
(All cleared in 2001)
PRH & IH by HA
PRH & SEN by HS
Public Permanent Housing (46.9%)
Subsidized Sale Flats (16.2%)
TPS,HOS,PSPS,MIHS,BRO,MSS by HA
FFSS, SCHS by HS
Private Temporary Housing (0.7%)
HA Hong Kong Housing Authority
Private Permanent Housing (52.4%) HS Hong Kong Housing Society Fig. 48: Housing type in HK, Based on source: HA,2011
PRH Public Rental Housing
IH Interim Housing This diagram shows the basic housing type in HK, basically, there are two types: Public housing and Private
SEN Senior Citizen Residences Scheme housing, then each type consists of temporary housing and permanent housing. HA (Hong Kong Housing
TPS Tenants Purchase Scheme
HOS Home Ownership Scheme Authority) is a government department in charge of public housing, HS (Hong Kong Housing Society) is a
Flats of Hong Kong Settlers Housing Corporation Limited PSPS Private Sector Participation Scheme non-government organisation helping with some housing programs. At the beginning, there were only
MIHS Middle Income Housing Scheme Public Rental Housing (PRH), later, a series of programs like HOS, TPS,help middle-income people purchas-
BRO Buy or Rent Option Scheme
MSS Mortgage Subsidy Scheme ing their own house with a discount, it is called Subsidized Sales Flats. Then all the programs stopped
FFSS Flat-For-Sale Scheme because the dramatic change in economic and housing market. Right now, the government is only respon-
SCHS Sandwich Class Housing Scheme sible to provide PRH for low-income people. However, some people propose to restart programs like HOS so
that more people can buy their own houses.
55
(%)
160 152
No. of Live Applicants (Thousands)
Private housing
120 52.3%
108
97
80
50
Public housing
40
47.7%
0 45
2001/02 2005/06 2010/11
1998 2003 2011
Fig. 49: Number of live applicants for public housing 2001-2011, Fig. 50: Distribution of Population by type of housing 1998-2011,
the number of applicants increased dramatically because the extreme high housing price in market. it shows that more and more people live in private housing, partly because of the privatilization of public housing.
Based on source: HA, 2011 Based on source: HA, 2011
20

25. 2. Problem Statement
2.42 Current condition
There are two main categories of housing type in Hong Kong: the public 1600
and the private (fig.48). In the public sector, there is a distinction between
No. of flats (Thousands)_
1400 Private Flats
1 153 1 433
Public Rental Flats (PRH) and Subsidized Sale Flats. PRH is mainly for low- 1200
income people with mean-tested subject subsidies. Applicants usually 1000
800 HA PRH Flats 708
have to wait 2-3 years for a PRH house, however the waiting time is get- 653
600
ting longer in recent years. The number of applicants for public housing in- 400 356 374
creased from 108,000 in 2001 to 152,000 in 2011 (fig.49). Subsidized Sale 200 HA Subsidized Sale Flats
Flats is mainly for higher low-income people and middle-income people 0
2001 02 03 04 05 06 07 08 09 10 11
to buy their own houses, and many related housing policies, like HOS, TPS
Year
and PSPS, were launched to support the privatization of public housing.
Fig. 51: Stock of major types of permanent residential flats 2001-2011, Based on source: HA, 2011
it shows the number of public housing increased much less than private housing.
According to the latest figure (fig.50), about 46.9% of the domestic house-
holds live in public housing, which consist of 47.7% of total population.
Due to the privatization of public housing, the proportion of population liv- %
ing in public housing decreased in the past decade. Moreover, the housing 45 20
Public expenditure on housing_
40
stock in the public sector increased far more less than in the private sec- 35 15
tor, that 280,000 flats were added in the private sector in the past decade 30
(HK$ billion)
while only 73,000 flats increased in the public sector (fig.51). 25
10
20
15
Since 2002, the public expenditure on housing from the government de- 10 5
creased (fig.52). From 2003, private housing price began to rise again, 5
0 0
almost reach the price in 1997 when the property bubble broke down. 2000/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 #
People can’t afford to buy a house in the market, at the same time, hous- Year
ing became a speculation tool attracting rich people from China mainland # Revised Estimate Public expenditure on housing As % of Total Public Expenditure
which again raise the housing price. Many people began to protest for af- Fig. 52: Public expenditure on housing by government 2001-2011, Based on source: HA, 2011
fordable housing and more public housing. Currently, housing problem is it shows the government spend less money on public housing in recent years.
the main root of social discontent in Hong Kong. 21