To study the social implications of home ownership in Hong Kong

Abstract

Home ownership has been recognized by many academic researchers as the preferable tenure compared with renting. As extolled by many policy decision makers, the benefits of home owning against renting received substantial benefits which has tangible constructive profitable impacts such as capital appreciation and intangible benefits such as life contentment, social stability, security of tenure, raised self-esteem, sense of belongings, civic participation, improved physical health and better child outcomes. In fact, few studies havebeen conducted in a Chinese society whether these perceived benefits are also confessed by home owners or potential buyers. Given the strong empirical studies in Western countries, it gives particular interest to explore further and undertake research pertaining to social benefits of home ownership in Hong Kong to ascertain the benefits derived. In Hong Kong, home ownership was promoted by the government since the Long Term Housing Strategy in 1987. However, government had re-positioned its home ownership policy after the Asian Financial Crisisin 1997.Government clarified that the housing objectives would focus on provision of public rental housing to low income group and at the same time minimize its intervention in the private property market by maintaining adequate land supply to sustain an unprejudiced and steady operating atmosphere in the private property market. In fact, the housing policy was shifted from public-led to market-led approach. The Secretary for Housing, Planning and Lands released a Statement on Housing Policy with nine measures were introduced to stablilize the housing market including suspension of production and sale of HOS flats indefinitely and sale of government land can only be applied through the application list. As such, people’s aspiration for home ownership was destructed due to shortage of housing supply and the aggregate demand for home ownership had pushed up the housing price which falls outside most people’s affordability. This paper attempts to explore if social implications of home ownership would have impact on one’s willingness to become home owner by comparison between two target groups of respondents including home owner and renter. The result of the survey and individual interview indicate that home ownership not only brings individual benefits to home owners or potential buyers such as personal fulfillment, wealth accumulation and life satisfaction but also generates societal benefits of maintaining stability, supportive to government and strengthening sense of belonging to the society. It is worthwhile and justified for the Hong Kong Government to accord top priority to materialize people’s desire for home ownership of its spillover individual and social benefits.