Why some Hong Kongers live in homes smaller than a parking space

Landlords in Hong Kong, a city with a notoriously high cost of housing, have found they can make more money by dividing a flat into two or more units

Tens of thousands of people in densely populated, land-poor Hong Kong live in tiny dwellings made by dividing up apartments, most smaller than a parking space. It’s an affordable option for students and low-income families but can also mean banging shins in cramped and in some cases substandard living spaces.

The city’s government has proposed new rules that would set minimum standards for such housing units, but residents and advocates for the poor worry that it could drive up rents and make it even harder to hang on in the city. The city’s eventual goal, mandated by Beijing, is to eliminate subdivided apartments over the next 25 years.

Officials are aiming to pass the rules into law within the year. After that, landlords will have a grace period to make their substandard flats meet the bar. The government has promised to assist affected residents in resettlement and adopt a gradual approach in its policy implementation to avoid causing panic.

Here are some of the numbers that illustrate the residents’ living conditions and the proposed policy.

7.5 million Hong Kong’s population in mid-2024

80 square kilometers (31 square miles) How much land is used for housing in the densely-packed territory, according to the city’s planning department

110,000 The number of dwellings created by dividing apartments

220,000 The number of people who live in them

10 square meters (110 square feet) The median size of the units that have been carved out. About one-fourth are less than eight square meters (86 square feet), the minimum size mandated under the proposed rules

12.5 square meters (135 square feet) The standard size of a parking space in Hong Kong

5,000 Hong Kong dollars: or PHP 37,000 the median rent for a unit in a subdivided apartment

33,000 Estimated number of units that would need major renovations under the proposed rules

2049 The year by which China’s central government wants Hong Kong to phase out subdivided units. It will mark 100 years of communist rule in China.

Source: Philstar

Building permit approvals continued to fall in January

Approved building permits continued to decline by record double digits in January, the Philippine Statistics Authority (PSA) reported.

The PSA, citing preliminary data, said building projects covered by the permits numbered 12,526 in January, contracting by 14.6% from 14,665 a year earlier.

This was the second straight month that construction starts fell. January’s decline was steeper than the revised 5% year-on year drop logged in December last year.

It was the largest decline to date since the PSA began tracking the indicator on a monthly basis in January 2024. Previously, approved building permits data were released on a quarterly basis.

Building projects in January covered a floor area of 3.72 million square meters (sq.m), up 29.5% from a year earlier.

Construction projects represented by the permits were valued at P48.58 billion in January, 26.1% higher from P38.52 billion a year earlier.

Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc. said that the decline in construction activity can be an indicator of a “waiting” behavior from developers as they expect rate cuts this year, which can help them save costs in financing these projects.

“I expect this behavior to change this year as rate cuts are seen underway and the price of construction materials has stabilized,” he said.

Last year, the Bangko Sentral ng Pilipinas (BSP) slashed benchmark rates by a total of 75 basis points (bps) since its easing cycle in August, bringing policy rate at 5.75%.

However, in February during its first policy meeting this year, the BSP kept its policy settings, surprising market expectations and at the same time signaled fewer rate cuts this year.

BSP Governor Eli M. Remolona told Bloomberg in a televised interview last March 19 that the central bank could still cut rates next month up to 75 bps if economic output weakens.

Headline inflation rose 2.9% in January, steady as December.

In February, inflation slowed to 2.1%, bringing the average inflation rate in the first two months to 2.5%, within the central bank’s 2-4% target.

Additionally, retail price growth in the National Capital Region (NCR) eased to 1.2% in January, its weakest pace in five months.

Construction materials retail price index (CMRPI) in January was slower than the 1.5% in December and 1.4% recorded in January 2024.

On the other hand, construction materials wholesale price index (CMWPI) also slowed to a record 0.1% that month, lower than the 0.2% in December and 1.5% a year earlier.

The CMRPI is based on 2012 constant prices, while the CMWPI is based on 2018 constant prices.

The PSA noted that residential had the highest number of constructions at 7,671 or 61.2% of the total number of constructions during the month.

However, this segment dropped 14.1% year on year. Residential projects were valued at P20.94 billion higher than the P16.35 billion in January 2024.

Single homes accounted for 89.5% of the residential category with approved permits contracting by 11.3% to 6,863.

Permits for apartment buildings fell by 35% to 708, while permits for duplex or quadruplex homes also went down by 13% to 80.

Nonresidential projects, on the other hand, slipped 4.3% to 3,138 from 3,278 from January 2024.

These projects accounted 25.1% of the total and were valued at P24.16 billion, 40.4% higher from a year ago.

Approved commercial constructions which made up 72.9% of the nonresidential category dipped by 3.1% to 2,288 from 2,362 in January 2024.

Institutional permits were also down by 0.6% to 480 while industrial permits fell 13.1% to 193.

Meanwhile, approved agricultural projects went down by 7.6% to 109 from 118 a year earlier. Other nonresidential projects contracted by 26.9 to 68 year on year.

Alteration and repair permits fell by 17% to 977 and were valued at P2.49 billion.

On the other hand, approved permits for additions, construction that increases the height or area of an existing building, surged 24.8% to 463 from 371 in January 2024.

Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) had the most approved building projects, accounting for 26.2% of the total, with 3,279 construction projects, followed by the Central Luzon (1,314 permits) and Ilocos Region (1,135 permits).

The PSA said construction statistics are compiled from the copies of original application forms of approved building permits as well as from demolition and fencing permits collected monthly by the agency’s field personnel from the offices of local building officials nationwide.

Source: Business World

House-sellers forced to temper prices

The rise in stamp duty in England next month has prompted a rush to sell, leading to the widest choice for buyers since 2015

Homeowners trying to sell their property are facing the toughest competition in a decade, according to research from the property website Rightmove.

March has historically been one of the best months for property sellers, but the average price of a home coming to market has risen by only 1.1 per cent to £371,870 this month, as the number of new sellers hits its highest level since 2015.

Colleen Babcock, a property expert at Rightmove, said those who were finding buyers were working hard with their agents to “price competitively”.

“The big milestone ahead in England is the stamp duty deadline and, with a massive logjam of 575,000 moves going through the legal completion process, many cost-conscious buyers will be doing all they can to get their move over the line and avoid unnecessary extra tax,” she said.

Rightmove expects there to be 1.15 million property transactions this year. About 74,000 moves, including 25,000 first-time buyers, are expected to miss the March 31 deadline and complete in April.

Tom Bill, of Knight Frank, the estate agent, said despite the prospect of higher stamp duty in the new tax year buyers had started the year cautiously.

“Most mortgage rates have remained stubbornly on the wrong side of 4 per cent due to volatility on global markets, which means equity-rich, needs-driven buyers have been more active by comparison,” he said.

“We expect low single-digit house price growth this year, but this month’s spring statement and the future rate of UK inflation will be key factors in setting the trajectory of the housing market in 2025.”

Separate research from Savills, the estate agent, found the UK housing market returned to growth last year, driven by a £22.3 billion increase in spending on house purchases. It found the total value of the UK housing market grew by 6.3 per cent to £379 billion.

There were 1.1 million transactions at an average sale price of £343,822. The increase in spending on house purchases was largely driven by a much higher use of mortgage debt, up 18.1 per cent to £24.3 billion.

The greatest increase in mortgage debt was among first-time buyers, where it rose by 21.4 per cent to £12.2 billion.

Source: The Times