Chapter IX 

Facilitate Stable Living in a Caring and Inclusive Society

206. Improving people's livelihood is my key policy priority. Since taking office, the current-term Government has been striving to build a vibrant economy and promote development. These efforts aim to enhance our economy's long-term competitiveness, generate strong growth momentum, and lay a solid foundation for improving the well-being of our people – ultimately increasing their sense of happiness and well-being. This chapter on livelihood is the longest in the Policy Address, covering nine areas that are closely linked to the everyday lives of Hong Kong residents.

(A) Increase Housing Supply and Enrich the Housing Ladder

207. Safeguarding the basic housing needs of people of Hong Kong is the top priority of our governance. Since assuming office, I have strengthened housing protection for the grassroots by accelerating the construction of PRH, launching the innovative LPH and cracking down on PRH tenancy abuse. With the supply of PRH continuously increasing, the Government is now well positioned to further assist the grassroots in achieving home ownership. We will increase the supply of flats under the Home Ownership Scheme (HOS) and the Green Form Subsidised Home Ownership Scheme (GSH), optimise the sale and alienation restriction arrangements, help more PRH tenants realise home ownership, while enabling the owners of subsidised sale flats (SSFs) enter into the private housing market. With the housing ladder enriched, we can support residents across all walks of life to live and work happily.

Increase Public Housing Supply

208. In the five years starting from 2026-27 onwards, the overall public housing production (including LPH) will reach 189 000 units, about 80% higher than when I took office. Three years ago, PRH applicants had to wait 6.1 years on average before they were offered PRH. With our efforts over the past three years or so, the Composite Waiting Time for Subsidised Rental Housing has been shortened by a whole year to 5.1 years, and we are moving closer to the target of reducing it to 4.5 years in 2026-27. Subdivided unit (SDU) households can improve their living conditions by moving into PRH or LPH units one year earlier, while saving about $36,000 or $50,000 in rent on average per year respectively.

209. Three years ago, I announced the launch of 30 000 LPH units. About 10 000 of them will be completed for intake by the end of this year. The remaining 20 000 units will be completed in the coming year and a half.

210. The Basic Housing Unit regulatory regime, designed to eradicate substandard SDUs, is being scrutinised by the LegCo. Subject to passage of the bill, the regime will be implemented in March next year.

Redevelop Public Rental Housing Estates

211. The Hong Kong Housing Authority (HKHA) will announce redevelopment plans for Ma Tau Wai Estate and Sai Wan Estate this year. A study will also be conducted on the redevelopment of Model Housing Estate.

Enrich the Housing Ladder

212. With the increase in public housing supply, we will take measured steps to help people of Hong Kong achieve home ownership. They include the six measures below:

(i) Given the supply of HOS flats in the next five years is expected to be about 50% more than the five-year supply when the current-term Government took office, opportunities for both Green Form (GF) and White Form (WF) applicants to purchase HOS flats will increase significantly. On the basis that the supply of HOS flats are substantially increasing, we will increase the ratio of quotas between GF and WF from 40:60 to 50:50 to assist more PRH tenants to become owners, while at the same time transfer the original PRH units to Waiting List applicants, benefitting both parties at the same time.

(ii) To increase opportunities for WF applicants to purchase SSFs with unpaid premium in the secondary market, the HKHA will increase the quota of the White Form Secondary Market Scheme (WSM) by 1 000 to 7 000, starting from the next WSM exercise. Half of the 1 000 additional quota will be allocated to young family and one-person applicants below 40.

(iii) To prevent forfeiture of the WSM quota because of personal preferences, the number of approval letters issued by the HKHA will be suitably higher than the quota set under the WSM exercise, ensuring that the quota for flat purchases can be fully utilised, in order to strive to meet the expectations of the purchasers.

(iv) We will increase the ratio of larger units in HOS and GSH projects in response to market needs.

(v) We will relax the alienation restriction period of new flats for sale from 15 years to 10 years to encourage upward mobility. This measure will be applicable starting from the next HOS and GSH sale exercises.

(vi) We will launch the "Flat-for-Flat Scheme for Elderly Owners" of HKHA's SSFs, allowing those who have reached the age of 60 and owned their flat for 10 years or more to purchase a smaller flat or a flat in a more remote area after selling their original one in the secondary market with premium unpaid. In doing so, they can get additional cash to cover their living expenses, while urban or larger flats can be released for families in need to apply for.

213. The HKHA and the Hong Kong Housing Society will introduce a pilot scheme, allowing those who have owned an SSF for 10 years or more to let their flats with unpaid premium to eligible WF applicants after paying relevant fees, subject to a quota of 3 000.

Private Housing Supply

214. According to the Long Term Housing Strategy, the supply target for private housing in the coming decade is projected to be 126 000 units. The Government will have sufficient land to meet the demand in the next ten years, and will roll out such land to the market in an orderly and pragmatic manner. Besides Government land sale, other sources of private housing land supply include railway property development and Urban Renewal Authority (URA) projects, as well as private development projects.

(B) Land Development

215. The Government must maintain an ample supply of land to meet the demand for major development projects, long-term economic development and the community's housing needs. Land reserve is similar to bank savings in that both are saved for use when needed. We will sustain efforts to produce and retain control over the supply of land. In parallel, we will improve the efficiency of land production and lower construction costs by streamlining approval processes, optimising administrative procedures, strengthening internal collaboration, applying technology, reviewing relevant standards and more, so as to safeguard public interests and meet development needs.

Build Land Reserve

216. In the next decade, the Government will get ready around 2 600 hectares of "spade-ready sites"¹³. Apart from meeting the development needs, this would also provide the necessary room for the Government to build up a healthy land reserve.

Reduce Construction Costs

217. We will continue to streamline statutory procedures and administrative workflows. Relevant measures include:

(i) Simplify works approval procedures, set clear performance pledges, and enhance co-ordination among relevant departments on vetting processes to expedite approval.

(ii) The Housing Department (HD) will set up a Project Facilitation Office to co-ordinate departments in expediting the completion of public housing projects. The Housing Bureau (HB) has implemented a new management approach, under which the target time for project completion is set to prompt the accelerated completion of various project stages.

(iii) Leverage technologies. Next year, the DEVB will launch a Project Cost Management Platform, establishing a market price database and applying AI technology to analyse, for example, past government project cost data, to ensure greater cost-effectiveness in future project designs. The HD has also adopted the self-developed Building Information Modelling (BIM)-enabled Systematic Approach to Foundation Design, which automatically generates designs to further reduce costs.

(iv) The Building Technology Research Institute will continuously review the construction standards and requirements of government projects. In addition, regarding the approval of building materials for public housing, the HB will look into the accreditation of standards of more regions.

(v) The Government will relax the gross floor area (GFA) exemption arrangement for car parks in private developments by removing the mandatory requirement of constructing underground car parks as a condition of exemption, and granting full GFA exemption if developers construct no more than two storeys of above ground car parks.

(vi) The DEVB will conduct central procurement on a trial basis in the first half of next year, piloting in the procurement of commonly used materials including steel reinforcement and Modular Integrated Construction (MiC) modules, in order to save costs. The HB will also pilot the batch procurement of integrated modules of MiC method next year. In addition, the HB has established a database of standard building materials, covering commonly used materials such as aluminium windows and partition walls, to expedite the approval process.

Release Industrial Land in Urban Areas

218. Since 2000, the Planning Department has conducted five rounds of Area Assessments of Industrial Land in the Territory, and some of the industrial land have been rezoned for other uses such as residential and business uses. The Government will commence a new round of study this year and put forward recommendations next year, including the way forward for the Revitalisation Scheme for Industrial Buildings.

Urban Renewal with a New Mind-set

219. Embracing a new mind-set, we will explore the use of newly developed land to take forward urban renewal. Relevant measures include:

(i) Relax the current arrangement for the transfer of plot ratio within the same district to allow the cross-district transfer of unutilised plot ratio from redevelopment projects to other districts or even NDAs, to enhance market incentives for redevelopment.

(ii) Reserve three sites in Kwu Tung North and Fanling North NDAs in the Northern Metropolis for the URA to construct new buildings, which will be used as replacement flats under the "Flat-for-Flat" Scheme in the future.

(iii) Suitably increase the plot ratio of private redevelopment projects, on a pilot basis, for the seven designated areas¹⁴ with more pressing redevelopment need, allowing the increased plot ratio to be transferred for utilisation in the Northern Metropolis or other districts, or to be used for offsetting the premium payable for bidding land, lease modification in other projects or in situ land exchange.

Enhance Construction Safety

220. The Government will amend the Buildings Ordinance next year to enhance the deterrent effect against non-compliance with statutory notices or orders and serious unauthorised building works, and strengthen regulation of contractors.

(C) Enhance Transport and Commuting Convenience

Promulgate the Transport Strategy Blueprint

221. The Transport and Logistics Bureau will publish the Transport Strategy Blueprint by the end of this year to outline directions and specific measures for transport development.

Smart and Green Mass Transit Systems

222. We will soon invite tenders for the smart and green mass transit system project in Kai Tak, and will invite tenders for the projects in East Kowloon and the Hung Shui Kiu/Ha Tsuen NDA next year.

Accelerate the Introduction of Mass Transit Systems

223. To speed up the introduction of new mass transit systems from around the world, the Government will devise a regulatory framework applicable to different system technologies and operators, and introduce a bill next year.

Promote Autonomous Vehicles

224. The Government established a regulatory framework for autonomous vehicles (AV) last year. Three areas will be approved this year for AV trials, aiming at AV cross-district travel and connections to other modes of transport, to accelerate the large scale development of driverless autonomous driving in Hong Kong, expediting its transition to commercial operations, and facilitating the industry's expansion to overseas, particularly right-hand-drive markets, using Hong Kong as the platform.

Regulate Ride-hailing Services by Legislation

225. The issue of regulating ride-hailing services in Hong Kong has persisted for over 11 years. The current-term Government is determined to resolve this issue, striving to pass the legislation on regulating the services before the prorogation of the current-term LegCo, with a view to safeguarding the public's travel safety.

¹³ "Spade-ready sites" refer to sites that have gone through procedures including rezoning, clearance and formation, and are ready for commencement of works.

¹⁴ The Land (Compulsory Sale for Redevelopment) (Amendment) Ordinance 2024, which came into effect last year, specified seven areas with more pressing need for renewal based on the areas covered by the OZPs, including Cheung Sha Wan (the same OZP covering also Sham Shui Po), Ma Tau Kok (covering Kowloon City and To Kwa Wan), Mong Kok, Sai Ying Pun and Sheung Wan (covered by the same OZP), Tsuen Wan, Wan Chai and Yau Ma Tei. 

(To be continued.)

Ends/Wednesday, September 17, 2025
Issued at HKT 13:08

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