A study of micro units and homeownership in Hong Kong private housing market

Abstract

Due to the popularity and many discussions regarding micro units in Hong Kong, it is intriguing to learn about the actual situation. Micro units had been claimed as the opportunities or options for first-time home buyers to buy their first property by the developers and the social media. With the increasing number of micro units in Hong Kong and the shrinking living space, it is necessary to investigate whether micro units should be promoted or regulated in Hong Kong.

This study provides the general insight of what micro units are and differences of micro units in different cities. By studying the standard housing and minimum living space in other countries, it helps to give more insights about how other cities dealt with micro units and compare the situation of Hong Kong with other cities. Through the analysis of the monthly figures on the statistics of the Building Department for the permits to occupy over the 10-year-period from 2007 to 2016, it is found that the number of units under 250 square feet are increasing. By further grouping and remapping of the data, more information was depicted. There are also interesting findings in the interviews which were contributed by different stakeholders including occupants, developer, property agents, management agents and district councilors. They provided different points of view from their respective roles. Therefore, the debate of whether micro units should be promoted or regulated in Hong Kong could be consolidated in this study.