Housing Dilemma of Young People in Hong Kong
14 Pages Posted: 30 Aug 2016
Date Written: August 30, 2016
This working paper raises the question whether Hong Kong’s housing problems for young people can be solved. Unlike Singapore which maintains a highly diversified manufacturing sector, Hong Kong has moved its manufacturing sector to the Mainland. The imbalanced economic structure which heavily relies on financial service has thus put Hong Kong into a dilemma: The more Hong Kong depends on the financial service sector, the less of young people will be able to find employment opportunities from the manufacturing sector in the future. The deep-rooted problem is that prosperity of the financial service sector must depend on the vitality and growth potential of the real economy. If the production pie is decreasing which drives people to make money from renting house rather than work for better payment, then housing almost certainly acts as a vehicle to accelerate the income polarization process as it has higher barrier to new market entrants.
Suggested Citation: Suggested Citation