How can the enhanced well-off tenants policies and other push and pull factors motivate better-off tenants to vacate public rental housing flats in Hong Kong?

Abstract

Housing policy is intimately bound to most citizens in Hong Kong, particularly impacting more than two million public rental housing (PRH) residents. Meanwhile, PRH is undoubtedly a precious resource for society. Among various housing policies, the Well-off Tenants Policies (WTP) play a crucial role in safeguarding public housing resources. Apart from increasing the supply of housing units, the continuously rising demand for PRH units highlights the significance of the WTP in affecting better-off tenants to exit their PRH units and the achievement of an equitable allocation of public housing resources to those in need. The WTP has experienced two major revisions since its establishment in 1996, including the revised WTP in 2016 and the enhanced WTP in 2023 respectively. A variety of tightened measures and new provisions were added to the revised and enhanced WTP, such as additional declarations of domestic property ownership and occupancy status, strengthened random checks, an enhanced reporting mechanism, and aggravated penalties. This paper concentrates on investigating and exploring how the enhanced WTP in 2023 can motivate better-off tenants to move out of their PRH flats. Meanwhile, other push and pull factors are also comprehensively observed and analysed to contribute to improving and revising the WTP in the future. This research utilises a qualitative research approach by obtaining data through various in-depth interviews and elaborated by descriptive analysis. After interviews with various respondents, it was discovered that the enhanced WTP has only a slight impact on encouraging better-off to vacate PRH flats because it only takes into account mandatory and punitive measures and lacks sufficient inducements and pull factors. To achieve a rational and equitable allocation of public housing resources, the government’s role in revising the WTP through strengthening incentives and implementing additional measures is indispensable. Indeed, several nations and areas set a role model by awarding diversified incentives to urge the better-off tenants to leave PRH units. To tie in with the actual situation in Hong Kong, the government should implement a series of strengthened measures such as modifying the enhanced WTP to accumulate wealth for upward mobility, offering financial subsidies and tax benefits, increasing subsidised housing and providing units’ quotas for better-off tenants, improving the living environment and providing various units with larger areas.