hong kong diploma of secondary education liberal … loan and subsidy amount for single person is...
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Hong Kong Diploma of Secondary Education
Liberal Studies
Independent Enquiry Study Report
Standard Covering Page (for written reports and short written texts
of non-written reports)
Enquiry Question: The reasons of the difficulties faced by post 80’s in Hong Kong
when purchasing flat and should the government set up policy
for helping them to purchase flat?
Year of Examination:
Name of Student:
Class/ Group:
Class Number:
Number of words in the report: 3569
Notes:
1. Written reports should not exceed 4500 words. The reading time for non-written reports should
not exceed 22 minutes and the short written texts accompanying non-written reports should not
exceed 1100 words. The word count for written reports and the short written texts does not
include the covering page, the table of contents, titles, graphs, tables, captions and headings of
photos, punctuation marks, footnotes, endnotes, references, bibliography and appendices.
2. Candidates are responsible for counting the number of words in their reports and the short
written texts and indicating it accurately on this covering page.
3. If the Independent Enquiry Study Report of a student is selected for review by the School-Based
Assessment System, the school should ensure that the student’s name, class/ group and class
number have been deleted from the report before submitting it to the Hong Kong Examinations
and Assessment Authority. Schools should also ensure that the identities of both the schools
and students are not disclosed in the reports. For non-written reports, the identities of the
students and schools, including the appearance of the students, should be deleted.
Sample
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Table of Contents
A. Problem Definition P.3-4
B. Relevant Concepts and Knowledge/Facts/Data P.5-8
C. In-depth Explanation of the Issue P.9-11
D. Judgment and Justification P.12-18
Bibliography / Reference P.19-21
3
A. Problem Definition
Theme of Study
The general impressive of housing problems in Hong Kong are such as soaring property
prices, insufficient regulation of the property market and land supply shortages. Recently,
the difficulties faced by post 80’s when purchasing flat have aroused discussion in the
society and affected social harmony due to their dissatisfaction. The Policy Address in 2013
also claimed that as high housing prices and rents affecting young couples’ plans to marry
and start a family. This undermines family harmony and can cause potential safety and
health hazards.1 Why are they complaining towards the high property prices? What are
their problems faced in Hong Kong nowadays? Why the government cannot help them to
overcome this issue? These raise my interest in investigating on this title.
Objective of Study
The objectives of the study are to find out
What are the causes of the difficulties faced by post 80’s in Hong Kong when
purchasing flat?
Should the government set up policy for helping the post 80’s to purchase flat in Hong
Kong?
Scope of Study
The scope of study is focus on post-80s situation in buying flat in Hong Kong. The
post-80s generation refers those who were born in or after 19802, this means they are
roughly aged around 30.
Background Information
After the hit by Asian financial crisis in 1998 and outbreak of Severe Acute Respiratory
Syndrome (SARS) in 2003, the economy of Hong Kong recovered and grew rapidly since
2004. In addition to the speculation by both Hong Kong people and Mainlanders recent
year, the property prices rocketed to a history high level broke the record in 1997, and the
prices were expected to rise further according to data in April 20123.
Facing the sky-high property prices, although the post-80s with better educational
1 Policy Address 2013. http://www.info.gov.hk/gia/general/201301/16/P201301160282.htm
2 HKUST. Hong Kong ‘s Post-80s Generation : Profiles and Predicaments. May 2010. Retrieved from
http://www.cpu.gov.hk/doc/en/research_reports/HK's%20Post%2080s%20Generation%20-%20Profiles
%20and%20Predicaments.pdf 3 Wenweipo,香港樓價創 1997 年後新高, 6/4/2012 . Retrieved from
http://news.wenweipo.com/2012/04/06/IN1204060053.htm
4
opportunities and jobs and they plan to get marry, they are the one who suffered most as
they have immediate need to own a flat and form their own families. Their voices are
expressed through different channels like TV, radios and sit-in etc. which successfully
aroused public attention towards their situation.
Although lots of measures are introduced by the Hong Kong government, aiming to help
middle-class to purchase their own flats, these measures including HOS, HALS, SCHS and
MHPP etc., by May 2012, there were still nearly 70% of young people feel pressure on
their ability on purchasing flats4. This indicated that the measures adopted by the
government may not be effective enough in helping post-80s to purchase flat.
4 HKET, 7 成青年憂財政 多涉置業難, 14/5/2012. Retrieved from
http://hk.news.yahoo.com/7%E6%88%90%E9%9D%92%E5%B9%B4%E6%86%82%E8%B2%A1%
E6%94%BF-%E5%A4%9A%E6%B6%89%E7%BD%AE%E6%A5%AD%E9%9B%A3-224848702.h
tml
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B. Relevant Concepts and Knowledge/Facts/Data
Post 80s situation in Hong Kong
The term generally refers to the generation were born between 1980 and 19895. They have
the features that enjoyed more educational opportunities since the expansion of higher
education in 1990s. But the higher education does not imply more employment
opportunities. The unemployment rates have been increasing in the past decade for the post
80s. Besides, they seldom have chances obtaining the managerial or professional level of
job than before. Instead, they mainly serve as associate professional and clerical jobs, sales
and service jobs. Their earnings have been declining over time as compare with the general
working population.6Therefore, due to higher unemployment rates, lower starting salaries
and insecure jobs lead to many young people in disadvantaged position and more
dissatisfaction in the society.
Housing supply in Hong Kong7
At the end of 2012, there were about 2,613,500 flats in Hong Kong, comprising about
766,300 public rental housing (PRH) flats, 1, 390,600 subsidised sale flats and 1,456,600
private sector flats. About 30 % of Hong Kong’s population live in public rental housing
flats, and another 17 % live in subsidised sale flats. In other words, nearly half of the
population requires the housing supply in HK provided by the government. And the
government still takes an important role to plan and provide housing supply.
The whole year in 2011-12, there were about 21,300 residential units completed, of which
about 10,100 were private housing flats (excluding village houses) and around 11,200
public housing flats of the Hong Kong Housing Authority (HKHA). For the waiting time of
public rental housing, the average waiting time was about 2.7 years for general applicants.
But the general public still think that the demand is highly excess than the supply in the
property market.
Government’s policy objectives
The government hopes to maintain the healthy and stable development of the private
property market in Hong Kong.8 At the same time, the government also have the aims
9 in:
assist grassroots families to secure public rental housing to meet their basic
housing needs;
5 Data from : http://en.wikipedia.org/wiki/Post-80s
6 HKUST. Hong Kong ‘s Post-80s Generation : Profiles and Predicaments. May 2010. Retrieved from
http://www.cpu.gov.hk/doc/en/research_reports/HK's%20Post%2080s%20Generation%20-%20Profiles
%20and%20Predicaments.pdf 7 Policy Address 2012. http://www.yearbook.gov.hk/2012/en/pdf/E11.pdf
8 Hong Kong Yearbook 2012. http://www.yearbook.gov.hk/2012/en/pdf/E11.pdf
9 Transport and Housing Bureau homepage
http://www.thb.gov.hk/eng/policy/housing/policy/private/index.htm
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assist the public to choose accommodation according to their affordability and
personal circumstances, and encourage those who can afford it to buy their
own homes;
provide subsidized home ownership flats on top of public rental housing so as to
build a progressive housing ladder; and
maintain the healthy and steady development of the private property market,
with priority to be given to meet Hong Kong permanent residents’ needs
amidst a tight supply situation.
Relevant schemes provided by the Government response to housing supply for the
middle class thought out the decades: (see table 1)
Table 1
Scheme Explanation
Home Ownership Scheme
(HOS)
Home Ownership Scheme (HOS) is designed to assist
residents to buy their own home. 10
The scheme is response to the aspirations of low- and
middle-income families to buy their own homes.
The scheme has been suspended in 2003 due to falling
real estate values.11
But the Chief Executive
announced in the 2011/12 Policy Address the
resumption of the HOS.
The Tenants Purchase
Scheme (TPS)
Tenants Purchase Scheme is a scheme that allows
tenants to buy their flats in public housing estates
under Hong Kong Housing Authority. 12
TPS was introduced since 1997 which aimed to enable
at least 250 000 families living in rental housing to
buy their flats at affordable prices over the next ten
years. 13
The price is set to be much lower than the market
values of private flats and Home Ownership Scheme
(HOS) owing to the age of flats and restriction on
10
Housing Department homepage http://www.housingauthority.gov.hk/en/home-ownership/ 11
Wikipedia: Home Ownership Scheme. http://en.wikipedia.org/wiki/Home_Ownership_Scheme
12
Wikipedia: Tenants Purchase Scheme . http://en.wikipedia.org/wiki/Tenants_Purchase_Scheme 13
Data from http://www.housingauthority.gov.hk/arpt9900/eng/realize/realize_tps.html
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selling.
The Home Assistance Loan
Scheme (HALS)
The Home Assistance Loan Scheme (HALS) was
introduced in January 2003, aiming to help eligible
applicants to buy flat by offering them financial
assistance.
The approved families14
may opt to have an
interest-free loan of $530,000 (to be repaid over 13
years) or $390,000 (to be repaid over 20 years), or a
monthly mortgage subsidy of $3,800 (payable for 48
months). The loan and subsidy amount for single
person is half of the above rates.
However, after conducting an overall review on the
scheme, the Housing Authority terminated the HALS
in 2004.
Sandwich Class Housing
Scheme (SCHS)
The Sandwich Class Housing Scheme (SCHS) 15
aims
at providing housing to those who are unable to
afford flats in the private sector but exceeded the
income limits for HOS.
In view of the change of market needs after 200016
,
the government decided to suspend the sale of this
scheme since 2001. And there are three of the
Sandwich Class Housing developments were
converted into private properties for sale at full
market values.
My Home Purchase Plan
(MHPP)
The 2011/12 Policy Address 17
announced various
enhancement measures to the MHPP.
Under the enhancement measures, apart from the
proposed “rent-and-buy” mode, a “buy-or-rent”
option which allows the applicants to buy their
14
Data from http://www.housingauthority.gov.hk/en/home-ownership/loan-schemes/index.html 15
Legco Paper : http://www.legco.gov.hk/yr98-99/english/panels/hg/papers/hg05074b.htm 16
LCQ15: Subsidised housing for sandwich class. Retrieved from
http://www.info.gov.hk/gia/general/201212/12/P201212120307.htm 17
Legco Paper: http://www.legco.gov.hk/yr11-12/english/panels/hg/papers/hg0104cb1-699-3-e.pdf
8
MHPP flats direct at market price. (without going
through a rental period)
This aim to help households which have the long-term
ability to purchase a flat but do not have enough the
down payment to rent a MHPP flat first, and save up
money for the future home purchase plan.
The first 5000 flats under the plan is expected to be
ready for sell in 2014.
From the above analysis, we can see the features of the post-80s, the general situation of
housing supply and related policies provided by the government, which are some of the
factors for the difficulties for the post-80s to purchase flats. In the following, I will further
explain different views towards the difficulties of the post-80s and discuss whether the
government should provide assistance to them.
9
C. In-depth Explanation of the Issue
In recent years, the post-80s complained not well tackled by the government in many
aspects such as their occupational opportunities, their relatively drop of income as
compared with previous generation and therefore it led to the difficulties in purchasing
their own flats. At the same time, they asked for the government to carry out policy help
them to buy their own flats.
The key stakeholders with various view involved in the issue such as the Hong Kong
government, the politician (legislative councilors and party members), the scholars, the
post-80s and the general public.
The viewpoints to support the government need to address the home-purchasing issue
for post-80s:
The DAB18
expected the government can support the youngsters in academic, jobs finding
and flat purchasing as the youngsters nowadays facing strong difficulties and lack of
upward mobility. As the price of property market is keep on rising, the youngsters may face
frustration and low the sense of belonging to the society of Hong Kong.
The scholar, Professor Victor Wong of HKBU’s Department of Social Work,19
agreed that
it was too difficult for the young people to buy flat. As according to the Census and
Statistics Department, when the Hong Kong median pay rose 10% from 2001 to 2010, the
median income for people aged 15 to 24 remained unchanged at HK$8000. Even they have
tertiary education, close to 98% of this group live with their families. The government
needed to review the existing housing supply policy to tackle with the post-80s’s plight.
The post-80s expect the government can help them to purchase the flat in Hong Kong.
They think the government cannot follow the `small government’ and `big market’ policy
as the high price of property market. 20
As a university graduate, their salary is over the
requirement for PRH, but private housing is too expensive for them to buy. Many of them
cannot manage to buy homes for their marriage needs. Therefore, the government should
pay heed to this need.
18
Legco record. Retrieved from
http://www.legco.gov.hk/yr13-14/chinese/counmtg/floor/cm0109-confirm-ec.pdf 19
HKBU: Horizon. Tipping point: Hong Kong’s alarming income inequality. Retrieved from
http://cpro.hkbu.edu.hk/online_pub/nh_1213_2/nh1213_2_p12-17.pdf 20置業零資助 八十後被逼蝸居 http://newhongkonger.blogspot.hk/2010/06/blog-post_14.html
10
The viewpoints do not support the government need to address the home-purchasing
issue for post-80s:
The property analysts21
point out the focus of this issue is not on the help from the
government, rather, the attitude of the youngsters is more important. The pattern of
property market likes a cycle with up and down. If the youngsters aim at purchasing flat,
they can wait for a suitable time when the property market is going down. As they are
young, they have lots of time for saving money and waiting for a suitable time.
The legislative councilor, Wong Kong Hing,22
agreed that it is a serious problem for the
post-80s generation in purchasing flats. It is hard for youngsters to afford private housing
because they cannot afford the first instalment from their low incomes. Government seems
failed to address this issue effectively. But the post-80s should not rely on the government.
They should upgrade themselves to enhance their ability rather rely on the help from the
government.
The public who have the property23
do not support the government to subsidise the
youngsters. Buying flat was not an easy task even in the past few decades; it is not the
special problem for post-80s nowadays. As many banks allow 5% of the down payment for
youngsters, it was not an impossible task if they really want to purchase flat. Even, they
could buy home in remote areas which the prices of flat would be more reasonable.
Government’s view on housing problem24
It is inadequate land supply in Hong Kong. And it has a drop in land sales over the past few
years, combined with a decrease in private housing supply, property prices therefore raise
up further. In addition, strong demand from Mainland and overseas investors for
high-priced residential properties, developers have shifted to provide high-end units in
recent years. All these reasons have caused anxiety and pressure for potential buyers who
find prices beyond their reach.
Therefore, the government organized the Long Term Housing Strategy Steering
Committee25
to study the long term housing strategy and accepted the suggestion to
increase housing supply. The result of the study recommended that the future housing
supply be predominated by public housing with a 6:4 public-to-private housing ratio.
Public housing includes public rental housing (PRH) and subsidized HOS housing and the
21
Data from Http://www.mortgagepro.hk/ch/news/June-25 22
CUHK: Varsity May 2010. http://www.com.cuhk.edu.hk/varsity/1003/housing.pdf 23置業零資助 八十後被逼蝸居.http://newhongkonger.blogspot.hk/2010/06/blog-post_14.html, 24
Policy Address 2012. http://www.policyaddress.gov.hk/11-12/eng/p18.html 25
Policy Address 2014. http://www.policyaddress.gov.hk/2014/eng/p141.html
11
allocation of these housing flats will be based on the "putting Hong Kong people first"
principle.
12
D. Judgment and Justification
What are the causes of the difficulties faced by post 80’s in Hong Kong when
purchasing flat?
Causes of difficulties
After the above discussion, the factors causing the difficulties faced by post 80’s can be
divided into two types – internal and external. The internal one is more likely related to the
post-80s whereas the external one refers to the situations in Hong Kong.
Internal
High education, low salaries and unemployment
Table 1: Percentage of Population with Tertiary Education in Hong Kong by Birth Cohort, 1981-2006
Source: 2010, `HK’s Post-80s Generation: profiles and predicaments’
Table 1 shows the percentage of people born between 1959 and 1988 who have received
tertiary education as of 2006.26
It shows there was only 7.56% of young people from
1959-1963 (in age of 18-22) group had tertiary education in 1981, while increase to
39.75% of young people from 1984-1988 (in age of 18-22) group had tertiary education in
2006.
Table 2: The Ratio of Median Earnings (subgroup vs. General Working Population in Hong Kong by Birth
Cohort, 1981-2006
Source: 2010, `HK’s Post-80s Generation: profiles and predicaments’
26
HKUST. Hong Kong ‘s Post-80s Generation : Profiles and Predicaments. May 2010. Downloaded
from
http://www.cpu.gov.hk/doc/en/research_reports/HK's%20Post%2080s%20Generation%20-%20Profiles
%20and%20Predicaments.pdf
13
Table 2 shows the ratio of the monthly median income for different birth cohorts to the
general population from 1981 to 2006. The youngsters of age 18-22 earned 80% of the
Hong Kong’s median salary in 1981 and dropped to only 56% in 2006.
The post-80s are now faring worse than their predecessors in their economic fortunes.
Another data27
also illustrated 53.9% of those born in 1976-80 earned salary under
HK$10,000 in their early career phase (e.g. aged 21-25) in 2010.
In addition, the percentage of unemployed youths increased from 3.87 of youth aged
between 18 and 22 (those who born in 1959-1963) in 1981 to 11.84 in 2006 (for those born
in 1983-1988). 28
It showed improved education of the young people did not necessarily
lead to more employment opportunities.
Figure 1
Source: 八十後置業的幸與不幸, 2010-01-25 Hong Kong Economic Journal
Figure 1 shows the percentage of young people buying flat has dropped from around 40%
in 2002 to around 26% in 2010. The data29
from the By-Census in 2009 also indicated that
27
China Daily, `Post-80s need HOS housing’ , Mar 1 2011. Retrieved from
http://www.cdeclips.com/en/hongkong/Post-80s_need_HOS_housing/fullstory_61373.html
28
HKUST. Hong Kong ‘s Post-80s Generation : Profiles and Predicaments. May 2010. Retrieved from
http://www.cpu.gov.hk/doc/en/research_reports/HK's%20Post%2080s%20Generation%20-%20Profiles
%20and%20Predicaments.pdf 29
Hong Kong Economic Journal. 八十後置業的幸與不幸, 2010-01-25.
14
there were about 980 thousand people ranged age 20 to 29; it shared 14% of total
population. It implies lots of people affected and they are the young generation in Hong
Kong.
From the above tables and figures, it clearly shows that the post-80s suffered from the
features of higher unemployment rates, lower starting salaries and low earning that affect
the dropping in the transaction in property market. As buying flat involves a huge amount
of money as down payment and the long installment in the following ten or twenty years, if
the young people lack of money and job security, they are not capable to buy flat.
High expectation
The post-80s were born in the period when Hong Kong economy rapidly growth. They
enjoy a better living condition since their childhood. Some of them may even be the only
child at home, who enjoys the best materialistic lifestyle. Many fresh graduates changes
jobs every year or every two years. Their motivation aims at better title and better money.30
This phenomenon also contributed to the high expectations towards flats of post 80’s as
they want to have a similar living condition, regardless of their ability and current economy.
The pursuit of higher quality of life leads to more difficulties while post 80’s purchases
their flat.
Besides, post 80’s are considered as self-centre by their employers31
. Post 80’s were born in
an affluent society which is different from previous generations. Therefore, they may give
an image to their employers that they are spoiled, not hard-working enough, lack of
patience and modest mind to learn from others. Due to their negative images, managers or
employers refuse to promote post-80’s, as a result, they have less chance to be promoted in
managerial and professional level with more satisfactory wages.
Dependent Personality
Instead of seeking a way out, some post-80s tend to wait for others’ helping hand32
. They
refuse to admit that they also have responsibility in purchasing their own flats, but believe
this is the false of the government, property developers or speculators. Some of them may
spoil by their families and get used to rely on their parents, rather than paying effort by
themselves.
30
SCMP, Why and wherefores of Generation Y, 22 June 2013. 31
Sing Tao, 27/2/2010 僱主調查:「80 後」講潮語致誤解. Retrieved from
http://www2.news.sina.com.hk/cgi-bin/nw/show.cgi/2/1/1/1439968/1.html. 32林匡正, <<八十後運動>>, 次文化堂.
15
External
Limited land supply
Land supply in Hong Kong is limited. Around 23% of land has been developed33
and
about 40% are covered by country parks. And less than 7% of Hong Kong’s total land
is currently allocated for residential purposes. 34
For increasing land supply, the
issues such as reclamation and developed in country parks faced strong opposition in
the society.
Less transactions but high prices
There is a huge gap between the ideal and the reality in the property market.35
From the
period of 2010 to 2013, the number of property transactions dropped seriously from 15 000
to 50 000. And the property prices during these few years increased by 30%. More worse,
another data showed the completion of 9000 private residential units per year on average in
recent years. In that case, it is difficult for Hong Kong people find enough residential units
to purchase.
Some people comment this problem as the result of the policy of high land prices.36
The
Government put up dozens of lands for sale in every land sale exercise, but the transaction
prices invariably hit a record high every time due to limited supply from the government.
Low priority in Government
The public were generally accepted that the others have more pressing needs and should
take priority for PRH, such as the elderly, the poor, and low-income single earners aged
over 3537
. In the government’s Consultation Document 38
notes that` it would be difficult to
accord top priority to the housing needs of youngsters for the time being..’ but “the younger
generation is the future [and] the government must demonstrate its commitment to resolve
the housing problem, and establish an effective housing ladder which promotes mobility.”
If youngsters with less income, they plan to apply PRH. But the frustration also appeared as
there is a long waiting list and with low priority to them. A data39
shows that of 228,400
applicants on the waiting list at the end of March last 2013, 60,400 were aged below 30.
33
SCMP, Country park carve-up the worst of all land options, 17 September, 2013 34
Data from
http://www.educationpost.com.hk/resources/youth/140117-housing-dilemmas-give-the-young-a-future
35
Lego paper: http://www.legco.gov.hk/yr13-14/english/counmtg/hansard/cm0116-translate-test-e.pdf 36
Legco paper: http://www.legco.gov.hk/yr13-14/english/counmtg/hansard/cm0116-translate-test-e.pdf 37
SCMP, More young people drawn to public rental housing, 2 Jan 2014 38
Long Term Housing Strategy: Building Consensus, Building Homes , Sept 2013,
http://www.thb.gov.hk/eng/policy/housing/policy/lths/lthb_consultation_doc_201309.pdf 39
SCMP, More young people drawn to public rental housing, 2 Jan 2014
16
The number had grown from 16,500 in 2009 to 45,700 in 2012. Among the young
applicants, just over half were students and more than two-thirds were educated to
post-secondary level or above, while the rest had attained secondary level. It showed that
the demand of young people with their own flat was really needed. However, the
government stated the priority goes to the elderly and lower income family, and there is no
estimation of the waiting time of non-elderly one-person applicants.40
Limitations of Current Policies
In the light of difficulties mentioned, Hong Kong government has adopted various
measures including Home Ownership Scheme (HOS), Home Assistance Loan Scheme
(HALS) and My Home Purchase Plan (MHPP). However, the schemes have their
limitations. Such as the HOS which targeted to family, the need of single post’s 80 is not
taken into account. As the HOS has been stopped for a few years, the young couples were
also suffered. The schemes such as HALS and SCHS were suspended nowadays; more
middle class young couples were lack of other channels for help. For the MHPP, the quota
was set to 5000 at first, which was not enough for such a large number of post-80s.
Therefore, from the above analysis, for the young people who have need in home
purchasing due to personal needs for single living or form a family, they are still suffering
from both internal factors with lots of personal constraint and external factors in the society
that no suitable policy specifically tailored for them.
Should the government set up policy for helping the post 80’s to purchase flat in Hong
Kong?
I do not agree the government to set up policy for helping the post 80’s to purchase flat in
Hong Kong. There are three reasons are: first, it is not a unique issue in Hong Kong;
second, it is the duty of the post-80s, and third, the government uphold the fair principle
that need to allocate the resources to most needed person.
Not a unique issue in Hong Kong
The problems that the post-80s generation faces are not unique to Hong Kong, but common
in other countries. For example in Canada41
, some young generation cannot purchase
affordable homes or securing reasonable rentals by moving into non-traditional alternatives
40
LCQ15: Waiting time for Public Rental Housing applications
http://www.info.gov.hk/gia/general/201105/25/P201105250111.htm
41
Date from
http://www.cbc.ca/news/canada/gen-y-struggles-in-expensive-housing-rental-market-1.2102109
17
like cars, boats and collective houses. As the average cost of a Canadian home has more
than doubled since 2000.
It is common in both Taiwan and China too. There was a popular television drama called
‘Woju’,42
translated as snail home, sparked a nationwide discussion about skyrocketing
house prices and their impact on social stability, especially regarding the younger
generations. The Chief Economist of the National Bureau of Statistics of China says:
`The collective effort of four families is required to support a young family’s decision to buy
a house. Three generations of savings are thus exhausted in buying a single house.’43
Therefore, it is not a common practice that governments provide assistance to a specific age
group for the purchase of homes.
The responsibility of the post-80s
As an adult in the society, the post-80s have the rights to choose their own lifestyle and
responsible to achieve it by their own effort. If they want to set up a family and acquire flat,
they need a long term plan and serious consideration. They need to sacrifice some
enjoyment and save money for a long time for down payment and long term installment.
They also equip themselves with the knowledge of buying flat with a suitable financial
arrangement with banks or applying different schemes from the government.
Uphold fairness from the government
In Hong Kong, the problems of cage homes, cubicle apartments and sub-divided units
(SDU) also aroused the concern from the public. According to the Government,44
poorly-housed households refer to those living in private temporary huts, rooftop structures,
unsheltered accommodation and rooms/cubicles, bedspaces or cocklofts in private
permanent housing. For the SDU, it was estimated that there were 66 900 subdivided units
in Hong Kong involving 171 300 residents, accounting for 2.4% of the total population in
Hong Kong in 2013.45
49.6% of households living in SDU had applied for public housing.
It is obvious that the government should allocate the resource to them first as their situation
deserve more consideration.
Suggestions for Government
However, to a certain extent, I think the government can provide indirect help, such as
42
Data from eastasia forum website, China’s housing crisis, 18 January 2010,
http://www.eastasiaforum.org/2010/01/18/chinas-housing-crisis-2/ 43
Data from eastasia forum website, China’s housing crisis, 18 January 2010,
http://www.eastasiaforum.org/2010/01/18/chinas-housing-crisis-2/ 44
Legco paper: http://www.legco.gov.hk/yr12-13/english/sec/library/1213in22-e.pdf 45
Report on Survey on Subdivided Units in Hong Kong
http://www.thb.gov.hk/eng/policy/housing/policy/lths/sdurpt2013.pdf
18
stabilizing the property market, for young people in buying flats in the long run to achieve
social harmony and improve their quality of life.
Professor Victor Wong of HKBU’s Department of Social Work suggests that the
government needs to review the existing housing supply policy.46
Increasing the supply of
Home Ownership Scheme (HOS) flats is one of the ways to address the aspirations of
young people. This is because 70%-80% of actual first-time home buyers are aged 39 or
below.47
Besides, suitable property cooling measures to suppress speculation are needed. The
government can slightly intervene in the private property market, in order to restrict
speculation. The consideration of reintroducing rent control policy, enhancement of the
existing Special Stamp Duty and the introduction f the Buyer’s Stamp Duty in October,
201248
could be regarded as indirect measures to stabilize the property market on the one
hand, and address the issue of post 80s buying flats in the long run. It is because that these
measures would prevent rapid rise in property market. It is hope that the government can be
more sensitive to the market and adjust the suitable measures when needed.
Suggestions for Post 80’s
Apart from the help from government, the post-80s have the responsibility in enhancing
their ability in purchasing flats; they should prepare a budget49
, planning for the
expenditure and low risk investment50
, in order to save for capital in a quicker manner,
while reducing the effect of inflation occurred. For improving the negative image which
leads to the lack of promote opportunities, post 80’s should avoid bad personality such as
self-centre and changing job frequently. In contrary, post 80’s should learn from the older
generation, enhancing their working ability, and prove to the employers that they are
capable for a higher position and value a higher wages.
Conclusion
In my study, I have pointed put the difficulties faced by post 80’s when purchasing
owner-occupied flats and the causes behind. After summarizing, the difficulties can be
classified as internal and external factors that affect the post-80s in buying flats. I agree that
the post-80s have problems in buying flats but I do not agree the government need to be
46
Mentioned on P.9 47
Data from
http://www.educationpost.com.hk/resources/youth/140117-housing-dilemmas-give-the-young-a-future 48
Hong Kong Yearbook 2012. 49陳振康, <<上流力>>,天窗出版社 50
<<80 後置業錦囊>> , 紅石研究部, 青森文化
19
responsible and need to tackle them merely. I hope the government need to allocate the
resources to those more in needed rather than the post-80s. To improve the situation,
suggestions to government on policies adoption and suggestions to post-80s are discussed.
20
Bibliography / Reference
Book
1. <<八十後運動>>, 林匡正, 次文化堂
2. <<上流力>>, 陳振康, 天窗出版社
3. <<80 後置業錦囊>> , 紅石研究部, 青森文化
4. Land and the Ruling Class in Hong Kong (Alice Poon, Enrich Culture Group Limited)
News articles
1. China Daily, `Post-80s need HOS housing’ , Mar 1 2011. Retrieved from
http://www.cdeclips.com/en/hongkong/Post-80s_need_HOS_housing/fullstory_61
373.html
2. China Daily, My Home Purchase Plan vs traditional HOS housing. 19/10/2010.
3. HKET, 7 成青年憂財政 多涉置業難, 14/5/2012.
4. Hong Kong Economic Journal, 八十後置業的幸與不幸, 2010-01-25. Retrieved
from
http://hk.news.yahoo.com/7%E6%88%90%E9%9D%92%E5%B9%B4%E6%86
%82%E8%B2%A1%E6%94%BF-%E5%A4%9A%E6%B6%89%E7%BD%AE
%E6%A5%AD%E9%9B%A3-224848702.html
http://www2.news.sina.com.hk/cgi-bin/nw/show.cgi/2/1/1/1439968/1.html.
5. SCMP, Country park carve-up the worst of all land options, 17 September, 2013.
6. SCMP, More young people drawn to public rental housing, 2 Jan 2014.
7. SCMP, Why and wherefores of Generation Y, 22 June 2013.
8. Singtao, 僱主調查:「80 後」講潮語致誤解, 27/2/2010.
9. Singtao,「八十後」置業難 宜研究針對性「補底」, 10/1/2010.
10. Wenweipo, 香港樓價創 1997 年後新高, 6/4/2012 . Retrieved from
http://news.wenweipo.com/2012/04/06/IN1204060053.htm
Videos
1. http://mytv.tvb.com/news/newsat630/118901/726#page-1 (27 May 2011)
2. http://programme.rthk.org.hk/rthk/tv/programme.php?name=tv/roomstolet2010&d
=2011-02-01&p=4917&e=129804&m=episode (1 Feb 2011)
3. http://programme.rthk.org.hk/rthk/tv/programme.php?name=tv/newsreview&d=20
10-11-27&p=1987&e=123172&m=episode (27 Oct 2010)
4. http://programme.rthk.org.hk/rthk/tv/programme.php?name=tv/hkcc&d=2011-05-
23&p=858&e=141097&m=episode (23 May 2011)
21
Websites
1. CUHK: Varsity May 2010.
http://www.com.cuhk.edu.hk/varsity/1003/housing.pdf
2. HKBU: Horizon. Tipping point: Hong Kong’s alarming income inequality.
Retrieved from
http://cpro.hkbu.edu.hk/online_pub/nh_1213_2/nh1213_2_p12-17.pdf
3. HKUST. Hong Kong ‘s Post-80s Generation : Profiles and Predicaments. May
2010. Downloaded from
http://www.cpu.gov.hk/doc/en/research_reports/HK's%20Post%2080s%20Gen
eration%20-%20Profiles%20and%20Predicaments.pdf
4. Hong Kong Yearbook 2012.
http://www.yearbook.gov.hk/2012/en/pdf/E11.pdf
5. Housing Department homepage
http://www.housingauthority.gov.hk/en/home-ownership/
6. http://www.info.gov.hk/gia/general/201105/25/P201105250111.htm
7. LCQ15: Subsidised housing for sandwich class. Retrieved from
http://www.info.gov.hk/gia/general/201212/12/P201212120307.htm
8. LCQ15: Waiting time for Public Rental Housing applications
9. Legco Paper :
http://www.legco.gov.hk/yr98-99/english/panels/hg/papers/hg05074b.htm
10. Legco Paper:
http://www.legco.gov.hk/yr11-12/english/panels/hg/papers/hg0104cb1-699-3-e
11. Legco paper:
http://www.legco.gov.hk/yr12-13/english/sec/library/1213in22-e.pdf
12. Legco record: Retrieved from
http://www.legco.gov.hk/yr13-14/chinese/counmtg/floor/cm0109-confirm-ec.p
df
13. Lego paper:
http://www.legco.gov.hk/yr13-14/english/counmtg/hansard/cm0116-translate-t
est-e.pdf
14. Long Term Housing Strategy: Building Consensus, Building Homes , Sept
2013,
http://www.thb.gov.hk/eng/policy/housing/policy/lths/lthb_consultation_doc_2
01309.pdf
15. Policy Address 2012. http://www.yearbook.gov.hk/2012/en/pdf/E11.pdf
22
16. Policy Address 2013.
http://www.info.gov.hk/gia/general/201301/16/P201301160282.htm
17. Policy Address 2014. http://www.policyaddress.gov.hk/2014/eng/p141.html
18. Report on Survey on Subdivided Units in Hong Kong
http://www.thb.gov.hk/eng/policy/housing/policy/lths/sdurpt2013.pdf
19. Retrieved from
http://www.housingauthority.gov.hk/arpt9900/eng/realize/realize_tps.html
20. Retrieved from : http://en.wikipedia.org/wiki/Post-80s
21. Retrieved from eastasia forum website, China’s housing crisis, 18 January
2010, http://www.eastasiaforum.org/2010/01/18/chinas-housing-crisis-2/
22. Retrieved from
http://www.cbc.ca/news/canada/gen-y-struggles-in-expensive-housing-rental-
market-1.2102109
23. Retrieved from
http://www.educationpost.com.hk/resources/youth/140117-housing-dilemmas-
give-the-young-a-future
24. Retrieved from Http://www.mortgagepro.hk/ch/news/June-25
25. Transport and Housing Bureau homepage
http://www.thb.gov.hk/eng/policy/housing/policy/private/index.htm
26. Website of Hong Kong Housing Authority
http://www.housingauthority.gov.hk/arpt9900/eng/realize/ealize_hos.html
27. Website of Housing Department:
http://www.housingauthority.gov.hk/en/home-ownership/surplus-hos-flats/inde
x.html
28. http://en.wikipedia.org/wiki/Home_Ownership_Scheme
29. Wikipedia: Tenants Purchase Scheme .
http://en.wikipedia.org/wiki/Tenants_Purchase_Scheme
30. 置業零資助 八十後被逼蝸居
http://newhongkonger.blogspot.hk/2010/06/blog-post_14.html
23
Exemplar
No.
Marks
Problem Definition
and Identification of
Concepts/ knowledge
Explanation and
Justification
Presentation and
Organisation
2 8-9 8-9 8-9