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Affordable housing lessons from Sydney, Hong Kong and Singapore: 3 keys to getting the policy mix right

Affordable housing is a critical problem for Australia’s biggest housing markets. Five Australian cities are in the top 25 with “severely unaffordable” housing in a <a href="http://www.demographia.com/dhi.pdf">2019 Demographia survey</a> of 91 major metropolitan markets. Sydney was <a href="https://www.mortgagebusiness.com.au/breaking-news/13059-australia-s-housing-market-remains-severely-unaffordable">ranked the third least affordable</a> of the 91. The <a href="https://www.realestate.com.au/news/meet-australias-oldest-person-to-buy-their-first-home-this-spring/">average age of first-time buyers in Sydney has reached 38</a>. And, <a href="https://www.finder.com.au/how-much-of-our-wages-do-we-spend-on-rent-in-australia">on average, tenants spend more than 30% of their income on rent</a>. Those who entered the <a href="https://www.facs.nsw.gov.au/housing/help/applying-assistance/expected-waiting-times">Sydney market 10-15 years ago are more likely to find their housing affordable</a>. Cities with housing affordability issues have introduced various policy packages in response. This article compares the policies of Singapore, where housing is relatively affordable, Hong Kong (the <a href="http://www.demographia.com/dhi.pdf">world’s least affordable private housing market</a>) and Sydney. Our review shows a need for coherent and coordinated housing policies – a synergistic approach that multiplies the impacts of individual policies. Housing has direct impacts on people’s well-being. A housing market that works well may also enhance the economic productivity of a city. If not handled properly, housing affordability issues may trigger economic and political crises. Our review covers several aspects. <h2>A balance of renters and owners</h2> First, an affordable housing system needs to be about both the rental and ownership sectors. In Singapore, <a href="https://www.hdb.gov.sg/cs/infoweb/about-us">public housing provided by the Housing and Development Board</a> makes up 73% of Singapore’s total housing stock, which includes public rental and subsidised ownership. HDB flats house over 80% of Singapore’s resident population, with about 90% owning their homes. The average waiting time to get public housing is three to four years. Public housing is also important, although to a lesser extent, in Hong Kong. In this city, <a href="https://www.scmp.com/news/hong-kong/society/article/2182106/why-public-housing-shortfall-will-remain-thorn-hong-kongs#targetText=Public%20rental%20housing%20estates%20found,cent%20of%20Hong%20Kong's%20population.">44.7% of the population live in public housing</a>. The <a href="https://www.housingauthority.gov.hk/tc/about-us/publications-and-statistics/prh-applications-average-waiting-time/index.html">average waiting time is three to five years</a>, depending on household type. In both cities, subsidised rental and subsidised ownership are an integral part of the public housing system, which aims to improve housing affordability. Sydney takes a very different approach. <a href="https://www.aihw.gov.au/reports/hou/296/housing-assistance-in-australia-2018/contents/social-housing-dwellings">Social rental housing provides only 5.56% of housing</a> and <a href="https://theconversation.com/focus-on-managing-social-housing-waiting-lists-is-failing-low-income-households-120675">covers only low-income households in “priority need”</a>. The average waiting time to get into social housing is <a href="https://www.facs.nsw.gov.au/housing/help/applying-assistance/expected-waiting-times.">five to ten years</a>. Although there are other policy measures to support home buying and rental (such as the National Rental Affordability Scheme), these are not integrated with the public housing system in Sydney. Rather, the goal of these policies is to support the private housing market. <h2>It’s not just about housing supply</h2> Second, housing affordability needs to be backed up by demand-side policies – i.e. policies to help tenants and owners to develop financial capacity. Despite its heavy state intervention, Singapore’s public housing stresses the responsibility of individuals. The <a href="https://www.cpf.gov.sg/Members/AboutUs/about-us-info/cpf-overview">Housing Provident Fund</a> is a <a href="https://www.eastasiaforum.org/2019/03/15/singapores-mechanism-design-approach-to-housing-policy/">form of forced savings</a> for housing, retirement, health and education, among other things. It is <a href="https://pdfs.semanticscholar.org/84e6/28299b345dcba34d328112424990cf1cabc2.pdf">integrated with the pension system to enhance the efficiency of savings</a>. Forced savings are not available in Hong Kong and Sydney for housing purposes. Since 2017 <a href="https://theconversation.com/budget-needs-a-sharper-policy-scalpel-to-help-first-home-buyers-76791">first home buyers in Australia have been able to draw on their voluntary superannuation contributions</a> for a deposit. <h2>Work-life balance matters</h2> Third, action on housing affordability needs to take employment and its location into account. Ultimately, the reason people find it hard to afford housing in certain locations is because they need to achieve a work-life balance. Both <a href="https://www.citymetric.com/transport/no-hong-kong-has-best-transport-system-world-mtr-trams-boats-4148">Hong Kong</a> and <a href="https://en.wikipedia.org/wiki/Transport_in_Singapore#Public_transport">Singapore</a> have developed extensive public transport systems. These offer affordable options for people to travel efficiently to and from work. In Hong Kong, the average daily commuting time by public transport is 73 minutes. Some 21% of the residents have to travel for more than two hours a day. In Singapore, average commuting time is 84 minutes, with 25% exceeding two hours. In Sydney, the average time is 82 minutes, but 31% take more than two hours. This means a significantly <a href="https://moovitapp.com/insights/en-gb/Moovit_Insights_Public_Transport_Index-1678">larger proportion of Sydney residents spend more time on public transport</a>. Among the <a href="http://theconversation.com/another-tale-of-two-cities-access-to-jobs-divides-sydney-along-the-latte-line-96907">worst-affected are white-collar workers from the city’s west and southwest</a>. <h2>Lessons from the 3 cities</h2> So, what we can learn from these cities’ experiences with housing affordability? Cities take very different approaches to these issues. Each approach has its own merits and issues. A key argument against public housing has been that it might give the tenants less incentive to save for housing. It might also not be popular with mainstream voters because of the cost to taxpayers. Singapore’s approach seems to be a midway solution. The government plays a bigger role in providing housing, but does not waive individual responsibilities. Providing public housing and at the same time demanding individuals and employers contribute can send a strong signal: people are encouraged to join the labour force. So far, Singapore faces the least housing affordability issues. Hong Kong and Sydney are much more liberal in their approaches to housing. In Sydney, only the poorest benefit from the public housing system. The younger generation is struggling to get on the housing ladder. In Hong Kong, people are forced to buy housing in the commercial market if their income is even just above the eligibility line for public housing. The severe unaffordability of private housing in Hong Kong, even for young professionals, brews social discontent. Combining these three perspectives, Sydney’s housing, savings and public transport systems are far from well synergised to offer a competitive package of affordable housing. The <a href="https://www.greater.sydney/metropolis-of-three-cities">30-minute city plan</a> prepared by the Greater Sydney Commission might improve the situation. However, similar to Hong Kong, current policies are weak in building the capacity of young people to own homes.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/123443/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/youqing-fan-483837">Youqing Fan</a>, Lecturer, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a>; <a href="https://theconversation.com/profiles/bingqin-li-425950">Bingqin Li</a>, Associate Professor and Director of Chinese Social Policy Program, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>, and <a href="https://theconversation.com/profiles/chyi-lin-lee-368009">Chyi Lin Lee</a>, Associate Professor of Property, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/affordable-housing-lessons-from-sydney-hong-kong-and-singapore-3-keys-to-getting-the-policy-mix-right-123443">original article</a>. Image: Bill Roque/Shutterstock

Home Hints & Tips

Most expensive parking space in the world

A parking space has sold in Hong Kong in what is believed to be the most expensive sale of its kind. According to the <a rel="noopener" href="https://www.afr.com" target="_blank">Australian Financial Review</a>, the space in the luxurious Mount Nicholson residential project in Hong Kong was sold for $1.7 million by Wharf Holdings and Nan Fung Group. William Lau, a sales director at Centaline Property Agency in Hong Kong, told South China Morning Post, “it is definitely the most expensive car parking spot in Hong Kong”. Mr Lau said that the hefty price tag for the parking spot pales in comparison to how much residents at Mount Nicholson had paid for their high-class properties. In 2017, a single buyer purchased two apartments for a combined price of $192 million. "What concerns them most is that they need space to park their cars and not the money. They have bought it for their own use and not as an investment," he said. Property in Hong Kong has long been referred to as the most expensive square metre in the world. Mount Nicholson is located in the western side of Hong Kong's island, which is an exclusive hill known as The Peak. This high-class area is home to some of the most expensive properties in the world. Image credits: Getty Images

Real Estate

What life is like onboard the cruise ship with no destination

Hong Kong has tried several times to resurrect international travel after the devastation on the tourism industry, but to no avail. The pandemic has seen international travel, especially cruises, come to a grinding halt in the country for over 18 months. As Hong Kong, once Asia’s biggest international hub, continues to pursue their zero-COVID policy, many opportunities for travel bubbles with neighbouring countries fell through. To help locals experience a taste of travel again, Dream Cruises have come up with a fitting alternative vacation option. Passengers can now book their rooms on the Genting Dream ship, which floats around the country in a big loop before returning to the port. <img style="width: 500px; height: 281.25px;" src="https://oversixtydev.blob.core.windows.net/media/7844295/cruise-1.jpg" alt="" data-udi="umb://media/28b020cbbe2945e5a4eccefb8a8bc2b8" /> Image credit: Getty Journeys last either two or three nights, with room ranging from $295AUD to $4,160AUD for the experience. The Genting Dream can normally hold more than 3,000 people, but ticket sales have been capped at half capacity to ensure social distancing measures are able to be adhered to. To board the vessel, all passengers must be fully vaccinated or show proof of a negative COVID-19 test, as well as undergoing strict pre-boarding checks and health declarations. Passengers on board are encouraged to book access to the pool on deck, and while the hot tubs were closed, sun loungers and sofas by the deck bars were freely available. <img style="width: 500px; height: 281.25px;" src="https://oversixtydev.blob.core.windows.net/media/7844296/cruise-2.jpg" alt="" data-udi="umb://media/6b78c4da0ca647e0be77f8625e68ce6c" /> The Genting Dream’s medical centre. Image credit: Getty There are also a range of activities to take part in, including a basketball court, a mini-golf course, a play area with activities for children and an arcade for teenagers, lethally fast water slides twisting down to the main deck, and a hair-raising ropes course with a zip wire jutting out over the open sea. The ship also boasts a dedicated medical centre, fitted with an isolation room in case of any unprecedented COVID-19 emergencies. The unique cruising experience gives travellers a chance to relax in a brief bubble of normality while overlooking the South China Sea, as a suitable substitute to overseas travelling. Image credits: Getty Images

Cruising

Two pet cats test positive to coronavirus

Two pet cats in New York have tested positive for coronavirus, becoming the first domesticated animals in the US reported to have the virus. The felines, which are based in separate parts of the state, both had mild respiratory symptoms but are expected to recover. Officials at the US Department of Agriculture said the cats might have contracted the disease from people in their households or neighbourhoods. In one case, the cat’s owner tested positive to COVID-19 before the cat showed symptoms. In the second case, no individuals in the household were confirmed to have the infection, a spokesperson for the USDA said. “The virus may have been transmitted to this cat by mildly ill or asymptomatic household members or through contact with an infected person outside its home.” Earlier this month, several lions and tigers at the Bronx Zoo were found to have contracted the virus. Two dogs and one cat also <a href="https://www.info.gov.hk/gia/general/202003/31/P2020033100717.htm">tested positive for the virus in Hong Kong</a>. Dr Casey Barton Behravesh, an official at the US Centers for Disease Control and Prevention said there was no evidence yet that pets could spread the virus to humans. “We don’t want people to be afraid of pets,” she told the Associated Press. Dr Julia Crawford, president of the Australian Veterinary Association, said people with COVID-19 should minimise contact with their pets. “If you are sick, treat your pet as you would another member of the household,” she told the <a href="https://www.abc.net.au/news/2020-04-08/cats-large-and-small-can-catch-covid19/12128152">ABC</a>. “Do not kiss, stroke or sneeze on them. Get somebody else to look after them and keep washing your hands.”

Family & Pets

Asian countries brace for second surge of coronavirus

As Europe and the United States reel from their first waves of the coronavirus pandemic, Asian countries who have flattened their infection curves brace for signs of a second surge. The governments of Singapore, South Korea and Taiwan are reportedly implementing new containment measures after seeing <a href="https://www.thedailybeast.com/coronavirus-cases-resurge-in-asia-crushing-hopes-that-disease-was-contained">rises in the number of new cases after weeks of declines</a>. According to Ben Cowling, an epidemiologist at the University of Hong Kong, these countries had been able to contain the spread of the virus throughout February following reports of community infections brought by cases from China. However, the pandemic then went transnational, increasing the threat of imported infections as citizens and permanent residents return to their home countries. “At the end of February and early March we started to get more imported cases from Europe. Hong Kong got a lot from Europe, the US, and other parts of the world, and Taiwan got a lot from the US,” Cowling told <a href="https://www.wired.com/story/the-asian-countries-that-beat-covid-19-have-to-do-it-again/">Wired</a>. He previously told <a href="https://www.msn.com/en-au/news/coronavirus/asian-countries-fear-coronavirus-resurgence-i-am-nervous/ar-BB12CoZS?li=AAgfYrC">CBS News</a> that countries around the world might “get into a nasty cycle” of implementing repeated lockdowns every two or three months. “Coronavirus is not going away. We’re not going to eliminate it. We’re going to have to face the prospect that it is always going to be around, but hopefully in small numbers until we can identify an effective treatment or vaccine.” Dr Jerome Kim said cases of viral reactivation, where people who fully recovered from COVID-19 have since tested positive again, have been found in South Korea, China and other countries. However, he emphasised tests need to be carried out to evaluate testing sensitivities or confirm if the coronavirus found a way to evade detection. “I am nervous,” Dr Kim told CBS News. “What I hope is that what we see instead are little blips, so it’s like putting out a fire. You know that there are going to be embers that are glowing or smoking. You want to stamp those out before the fire starts again.”

International Travel

Airline makes female passenger take pregnancy test ahead of flight

A Hong Kong airline has apologised after it demanded a passenger take a pregnancy test before allowing her to board a flight to the US Pacific island of Saipan. 25-year-old Japanese citizen Midori Nishida was checking in for a flight at Hong Kong International Airport when a staff from the low-cost airline Hong Kong Express asked her to take a pregnancy test as part of a “fit-to-fly” assessment. Despite having marked on a check-in questionnaire that she wasn’t pregnant, the staff escorted Nishida to a washroom and handed her a pregnancy test, barring her from boarding until the test came back negative. Nishida told the <a href="https://www.wsj.com/articles/ticket-passport-pregnancy-test-flying-to-saipan-can-be-complicated-11578664961">Wall Street Journal</a> that the experience was “very humiliating and frustrating”. The airline indicated in the permission form that the test was required for women who are “observed to have a body size or shape resembling a pregnant woman”. It was reportedly part of Hong Kong Express’s response to immigration concerns in Saipan. The island, the largest of the US commonwealth Northern Mariana Islands, is a popular destination for birth tourism, allowing foreign nationals to ensure their babies become American citizens. There is <a href="https://edition.cnn.com/travel/article/saipan-birth-tourism-airlilne-pregnancy-test-intl-hnk/index.html">no federal law</a> banning pregnant foreign citizens to enter the country or give birth on US soil. “We would like to apologise unreservedly to anyone who has been affected by this,” the airline said in a statement. “In response to concerns raised by authorities in Saipan, we took actions on flights to Saipan from February 2019 to help ensure US immigration laws were not being undermined. “Under our new management, we recognise the significant concerns this practice has caused. We have immediately suspended the practice while we review it.”

International Travel

Hong Kong riots: Teenage protester shot with live round as violence escalates

A Hong Kong police officer shot a teenage protester at close range as authorities and pro-democracy activists came head-to-head in a fierce clash on Tuesday. Previously, officers have been known to fire warning shots in the air on multiple occasions during months of conflict in Hong Kong, but this was the first time a protester is known to have been shot. The officer in question fired the single pistol shot as protesters surrounded him with the bullet hitting an 18-year-old on the left side of his shoulder said police spokeswoman Yolanda Yu. Police Commissioner Stephen Lo said the bullet hit the 18-year-old on the left side of his chest and defended the officer’s actions as “reasonable and lawful”. Authority at Hong Kong’s hospital said the young boy was one of two people in critical condition after riots continued around the city, with a total of 51 people injured. The violence challenging Chinese rule came just as the Communist Party celebrated its 70th year in power. According to Ms Yu, the victim was shot after repeatedly ignoring police despite their warnings. “The police officers’ lives were under serious threat,” she said. “To save his own life and his colleagues’ lives, he fired a live shot at the assailant.” The movement has quickly turned into an anti-China campaign as activists demand for direct elections for the city’s leaders and police accountability.

Travel Trouble

Outrage as woman “upgrades” herself on flight

When you’re 40,000 feet in the air a little bit of courtesy goes a long way. And while most people seem to share this, there’s always one passenger on a flight who hasn’t received the memo. <a href="http://www.news.com.au/" target="_blank">News.com.au reports</a> the woman had booked standard seats on her Air Asia flight from Kuala Lumpur to Hong Kong, but decided to give herself a bit of an upgrade. But premium economy passengers whose seats she took didn’t take too kindly to her actions. <iframe width="560" height="315" src="https://www.youtube.com/embed/8ssijMu9Dy0" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen=""></iframe> Fellow flyer Bruce Lam says she spend “four or five minutes” arguing with the cabin crew before returning to her seat, but kept coming back for the better ones. What are your thoughts?

Travel Trouble

Meet the adorable cats watching over Hong Kong’s shops

While guard dogs mightn’t be much out of the ordinary, shopkeepers in Hong Kong prefer the feline touch when it comes to protecting their stores. In 2015, photographer <a href="http://www.marcelheijnen.com/" target="_blank">Marcel Heijnen</a> moved to a different neighbourhood in Hong Kong and found the stores in his new area were occupied by unlikely residents – cats. The animals, which Heijnen describes as “beautiful photogenic subjects,” not only provide companionship to the shopkeepers, but are also considered to be lucky. See the curious kitties in the gallery above and tell us in the comments below, what’s the strangest thing you’ve seen in a shop overseas? Images: Marcel Heijnen from the book Hong Kong Shop Cats.

Family & Pets

15 photos showcase Hong Kong from the eye of a local

Complex, modern and brimming with energy, Hong Kong is a city that at times can leave visitors breathless. From the city’s numerous eateries to its extravagant shopping and vibrant, tower-studded skyline, there’s a lot to experience in Hong Kong. In this photo essay, a photographer by the name of <a href="http://yourshot.nationalgeographic.com/profile/1198/" target="_blank">Brian Yen</a> showcases many of the city’s highlights, unveiling Hong Kong from the eye of local. From photographs of frantic road crossings to the pigeon-sized apartments inhabited by the locals, and the city’s famous Victoria Harbour, these pictures really do provide an accurate depiction of everything that makes this part of the world so unique. While all of these images are memorable in their own way, we think our favourite is that of the immense skyscraper that’s being constructed using bamboo scaffolding. Hong Kong is one of the last places on Earth that still uses this method of construction the skill of these part-engineers part-trapeze artists really comes through in a mesmerising image. To see all the photos scroll through the gallery above. Have you ever been to Hong Kong? And what’s your favourite photo from the collection? Please let us know in the comments below. Image credit: National Geographic / Brian Yen Related links: <a href="/travel/international/2016/05/drone-photos-hong-kong-sprawling-cityscape/">10 drone photos capture Hong Kong's sprawling cityscape</a> <a href="http://www.oversixty.co.nz/travel/international/2016/04/traveller-accidentally-catches-wrong-flight/">Traveller accidentally catches wrong flight</a> <a href="/travel/international/2016/05/where-are-the-worlds-busiest-airports/">Where are the world's busiest airports?</a>

International Travel

Owner of lost trans-Tasman cat located in Hong Kong

A Kiwi tom cat found mangy and flea-ridden in Brisbane now has another international connection to his story. After a desperate search to locate the ginger and white cat's owner, the woman was tracked down in Hong Kong. Toffee was recently found in Yeronga, a suburb of Brisbane, by a group of students who took him in. Then cat foster carer Eloise Thorpe took on the care of him and began the quest to find his owner. "He was in pretty poor shape, really flea ridden, a bit thin, his teeth were quite bad," Thorpe said. The vet discovered Toffee was micro-chipped. As well as containing the cat's name, the chip revealed he was 12 years old, and that his address was in Tauranga - nearly 2500km away. Thorpe called the number for his owners, but it was disconnected as they appeared to have left New Zealand for Australia at some point. Thorpe then looked up listings in Brisbane with the same surname, but with no luck. After turning to social media, his owner was discovered in Hong Kong. The woman - named May - has responded and is trying to figure out what should be the next move for Toffee, Thorpe said. "We have found his owner. We're just trying to work out the details of what's happening with him now." It appeared as if the owner had left Toffee with someone else when she left Brisbane for Hong Kong, although it is not clear how or why he became a stray. As it was not clear how long Toffee had been on the streets, and what diseases he may have picked up, it wasn't certain he would pass quarantine if he was to travel to Hong Kong to be with his owner, Thorpe said. However, he should have no problem finding a good home with his recent media coverage. "We've had a lot of people coming forward wanting to adopt him." Hero image credit: Facebook / Rescue Cats and Kittens Brisbane Written by Sam Boyer. First appeared on <a href="http://www.stuff.co.nz" target="_blank">Stuff.co.nz</a> Related links: <a href="http://www.oversixty.co.nz/news/news/2015/10/all-blacks-fireworks-gone-wrong/">All Blacks fireworks display gone wrong costs pyrotechnics company $100K</a> <a href="http://www.oversixty.co.nz/news/news/2015/10/restored-steam-engine-to-depart-from-picton/">Rail tour picks up steam after tow start</a> <a href="http://www.oversixty.co.nz/news/news/2015/10/kiwis-avoid-app-store-price-hike/">Kiwis avoid Apple's App Store price hike</a>

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Affordable housing lessons from Sydney, Hong Kong and Singapore: 3 keys to getting the policy mix right

Most expensive parking space in the world

What life is like onboard the cruise ship with no destination

Two pet cats test positive to coronavirus

Asian countries brace for second surge of coronavirus

Airline makes female passenger take pregnancy test ahead of flight

Hong Kong riots: Teenage protester shot with live round as violence escalates

Outrage as woman “upgrades” herself on flight

Meet the adorable cats watching over Hong Kong’s shops

15 photos showcase Hong Kong from the eye of a local

Owner of lost trans-Tasman cat located in Hong Kong