In Hong Kong, where we find ourselves the very bottom of Asia’s per-capita living space rankings, the quest for space isn’t just a struggle — it’s a matter of survival. Perhaps even more disheartening is the fact that only 7.6 percent of homeowners are younger than 35. Despite a recent minor dip in real estate prices, the road to homeownership is a veritable obstacle course for the city’s young residents. The special administrative region government must not only acknowledge, but also act upon the clarion call for a refined public housing policy that instills a greater sense of security and belonging among young people.

In 2017, the government took a promising step forward with the implementation of the White Form Secondary Market Scheme (WSM), giving hope to many young individuals who don’t qualify for “green form” status. This initiative opens up a pathway to homeownership by allowing a select group of white-form applicants to purchase second-hand public housing units without paying a land premium. While the idea sounds great, the numbers tell a different story.

The WSM quota for 2022 sits at a paltry 4,500, with a strikingly disproportionate 9:1 ratio of family to individual applicants. Added to this is the scarcity of willing sellers, and we’re faced with a situation where there are more mouths to feed than food. This situation presents a daunting challenge for young homebuyers, particularly those who are still single. The solution? A steady increase in the WSM quota, giving young Hong Kong residents a fair shot at securing their own slice of sanctuary.

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Furthermore, for second-hand public housing units that have not paid a land premium, the mortgage percentage plummets from a maximum of 90 percent to only 60 percent after the government’s 30-year warranty period expires. This requires income verification and stress tests, creating an additional barrier to homeownership. Meanwhile, the supply of public housing units under 30 years old is dwindling, with new units only accessible to green-form or WSM applicants five years after completion. It’s high time the authorities reconsider easing public housing restrictions on young applicants, thereby offering young people a wider range of choices and a better chance of finding a home that aligns with their dreams.

The government should auction off residential land more frequently to ensure sufficient housing supply. Developers, on the other hand, should adopt a “fair buy, fair sell” ethos

At present, the government adopts a lottery-based system for public housing purchases, and with those under 30 having less than a 1 percent success rate, that has made homeownership an elusive dream for many young people. In my view, an overhaul of this system is urgently needed; a new system should give a fighting chance to those who have repeatedly applied without success. Public housing is a crucial cornerstone of housing supply and its role is too important to be overlooked. The government must strive to optimize its policy in this area.

However, the onus doesn’t rest solely with the government. Private developers have a part to play too in boosting homeownership. A noteworthy example is the new development Coastline II in Yau Tong in southeastern Kowloon. Offered at deeply discounted prices, the project has attracted private housing buyers as well as public housing applicants. Private properties have their own advantages, including stronger capability to produce cash flows, greater liquidity, and higher appreciation potential. If the private market were to provide more affordable options, it could very well create another pathway for young people to achieve homeownership.

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Therefore, the government should auction off residential land more frequently to ensure sufficient housing supply. Developers, on the other hand, should adopt a “fair buy, fair sell” ethos. If they acquire land at a low price, they should be prepared to sell residential units at similarly low prices. It’s time to cast aside the maximization of profits and embrace a collective effort to tackle Hong Kong’s housing crisis.

The author is a member of the Legislative Council and a member of the Central Committee of the New People's Party.

The views do not necessarily reflect those of China Daily.