2021/22 has been another incredibly challenging year for Hong Kong and many people across the globe. The COVID-19 pandemic continued to wreak havoc around the world with millions of people infected with the virus. The Russia-Ukraine war that unfolded in early 2022 has fueled insecurity around the world. Rare weather condition has become far more frequent in many parts of the world due to climate change. Under such circumstances, it is hard to think of any city which could remain unscathed. Returning to Hong Kong, a new legislature was formed and the city will soon welcome a new chapter when the sixth term of the Chief Executive takes office in July 2022. Every time I read the news, I am reminded of just how much something happening around impacts us at home.
Although the Housing Society’s normal operations were inevitably affected by the pandemic during the year, mitigating measures were well in place to contain risks without causing major disruption to our businesses. This was partly due to our time-tested risk management which plays an integral part in the Housing Society’s strategic planning process. It is also attributed to the exceptional commitment, flexibility, creativity and inclusiveness demonstrated by all the staff members.
Thanks to the concerted efforts of Members, the Management and every single staff member at the Housing Society, we have achieved various successes on different business fronts during the year. Viable housing schemes that align with Government’s policy were formulated; housing projects stayed largely on schedule; wherever possible, sustainable design principles and new technologies were adopted in the planning of new developments; new housing options that better suit the needs of different ages were explored; and enhancement works were carried out to ensure that existing buildings are all in the best possible conditions.
We care deeply about our business operations, while supporting estate tenants and helping people in need within the community are also high on the agenda. Rent concessions, anti-epidemic packs and shopping coupons were offered to various stakeholders while advance project payments were provided for business partners to lend them a helping hand during this challenging period.
PARTNERING WITH THE GOVERNMENT TO INCREASE HOUSING SUPPLY
Though a safe and decent home is the most basic need for everyone, we all recognise that Hong Kong has a housing shortage.
To cater for future population growth and meet housing and economic development needs, the Chief Executive laid down the blueprint for the Northern Metropolis in her 2021 Policy Address. The metropolis, with a total area of around 30,000 hectares, encompasses the mature new towns of Tin Shui Wai, Yuen Long, Fanling, Sheung Shui and neighbouring new development areas such as Kwu Tung North and Hung Shui Kiu. These will be developed into a vibrant metropolitan area that is ideal for people to live, work and travel.
The Northern Metropolis Development Strategy is an important initiative for increasing land supply which in turn will allow housing supply to be substantially increased. The Housing Society’s long-term development plan perfectly corresponds with the Government’s housing strategy as the northern part of Hong Kong will also be the home of some of our major housing projects. These will include our Subsidised Sale Flats (SSF) projects in Fanling and Yuen Long, as well as the Dedicated Rehousing Estates (DRE) in Fanling, Hung Shui Kiu and Kwu Tung North. Currently being planned or under construction, these projects will provide more than 8,000 housing units in total, meeting the different needs of Hong Kong people.
To support the sales and management of these New Territories’ housing projects both now and in the future, an additional regional office in Fanling is on the horizon with the acquisition of an industrial building. Moreover, in partnership with Cyberport, we have taken space in the new regional office to set up a PropTech co-working area. The collaboration will benefit our business development while offering research opportunities to local start-ups.
The Housing Society is no stranger to rehousing exercises. In support of the Government’s development clearance exercises, as well as the Urban Renewal Authority’s redevelopment projects in the coming years, the Housing Society was entrusted to develop several DREs to provide non-means tested rehousing arrangements for eligible affected households. For example, foundation works were completed on our first DRE project on Pak Wo Road in Fanling with superstructure works commencing during the year. Scheduled for completion in 2024, the project will provide various types of housing including rental units, SSF and senior citizen residences, plus two residential care homes for the elderly (RCHE), a shopping centre and a public car park. Various facilities will be added to the DREs which will usually be built in newly-developed areas, optimising land use and creating quality homes for people of different income groups.
To echo the Government’s policy of providing more transitional housing, we leveraged our own housing resources to make available more T-Home units during the year. Take Ming Wah Dai Ha redevelopment project as an example. Some units left empty due to the project’s decanting process were renovated and converted into T-Home units, offering immediate accommodation for people in serious need of adequate living environment. Skipping the need for construction, this strategy of utilising existing units for transitional housing could expedite the entire allocation process. As of 31 March 2022, five T-Home projects offering around 700 units had been rolled out. Ultimately, some 1,000 T-Home units are expected in the next few years.
As a close partner of the Government, the Housing Society resolutely supports increasing the housing supply and providing decent accommodation for people of every age. With its inauguration on 1 July 2022, we look forward to working closely with the new administration to create more affordable homes for the community and a sustainable future for Hong Kong.
TURNING CHALLENGES INTO OPPORTUNITIES
Times of crisis provide opportunities for change. Though the evolving health crisis once felt like running a marathon with no finishing line, it did offer every one of us a golden chance to emerge stronger and better.
The pandemic fundamentally changed the way we work, stimulating innovations and accelerating the pace of digital transformation. Currently, the Housing Society has 25 projects that are being planned or in development. Over the next 20 years, they will contribute more than 40,000 subsidised housing units of various kinds with some 28,000 units to be completed in about 10 years. While our housing production will reach an unprecedented peak, innovative technologies and smart construction methods are being deployed to closely monitor the quality of all projects and ensure their timely delivery. Building Information Modelling (BIM) technology and Modular Integrated Construction (MiC) are two examples of the new approaches we are adopting in building construction. Where appropriate, they are being fully utilised in new housing projects.
Property management has also gone digital with Internet of Things (IoT) technology being applied to achieve higher efficiencies and lower operational costs. This enables property management teams, even without patrols, to acquire on-the-go facility data and better control facilities across the properties.
WALKING HAND IN HAND WITH THE COMMUNITY
As a corporate citizen, the Housing Society plays a key role in supporting the community. Serving our community and residents through these hard times was challenging, yet also provided opportunities for us to foster the spirit of mutual support and build closer ties. At the onset of the fifth COVID-19 wave, we launched a Community Care Campaign at a budget of HK$12 million, together with other initiatives such as rent concessions for commercial tenants that offered timely assistance to those struggling to stay afloat.
Helping the elderly age at home and addressing the needs of the most vulnerable are among our major initiatives. Although operations of the RCHE were disrupted by the fifth wave of COVID-19, our frontline staff remained steadfast and closely monitored the health of elderly residents. We also went the extra mile by introducing a range of additional measures beyond the regulatory requirements to strengthen protection for our most vulnerable residents.
At rental estates and elderly housing developments, additional manpower was deployed to support the elderly. The multi-disciplinary CES (Caring, Engaging and Smart) Team was tasked with meeting the housing, health and social needs of tenants across 20 rental estates. Together with colleagues from the Senior Citizen Residences Scheme, they distributed tailor-made videos and leaflets to elderly tenants, teaching them the proper procedures for conducting rapid antigen tests and reporting the test results to the Government. Emergency food packs were also delivered to needy elderly tenants who were under compulsory home quarantine.
The Housing Society has mapped out a clear vision to address the housing needs of the elderly in Hong Kong. The project under the Senior Citizen Residences Scheme at Lee Kung Street in Hung Hom, our third project under this scheme, has entered the final stage with completion targeted for late 2022. A ten-storey rental block at Jat Min Chuen, scheduled for completion in 2023, is another initiative that optimises existing resources to create new housing for the elderly.
CONTRIBUTING TO A SUSTAINABLE FUTURE
The ever-changing operating environment led us to reconsider the capabilities we have at our fingertips and plan for an unpredictable future.
As a “housing laboratory”, the Housing Society must progress with the times and explore various housing options to address the different needs of all ages in Hong Kong. In the first half of 2021, we commissioned The Chinese University of Hong Kong to undertake an 18-month intergenerational living study. This explored innovative ideas for subsidised elderly housing models and recommended those that the Housing Society should pilot in the future.
MAINTAINING BEST CORPORATE GOVERNANCE PRACTICES
As a well-established organisation with a more than 70-year history, the Housing Society is committed to maintaining the highest corporate governance standards. This is crucial for our long-term success, especially in an ever-changing operating environment. To uphold openness and accountability, a whistleblowing policy was established during the year. Employees, customers, suppliers and contractors are all encouraged to report any malpractice or suspected irregularities related to the Housing Society through an established reporting channel on a strictly confidential basis.
During the year, our corporate performance evaluation mechanism was reviewed with enhancements to better measure corporate achievements in different business lines throughout the year.
With these major updates, we strive to maintain a healthy corporate culture that values excellence, transparency, ethics and integrity which are all core to our continued growth and reputation.
TOGETHER WE ACHIEVE EXCELLENCE
Our outstanding performances have received numerous recognitions from local and overseas organisations, among these were several “Oscars” for their respective professional sectors.
Credit must go to everyone at the Housing Society for achieving such excellent results. I would like to express my sincere gratitude to all Members of the Supervisory Board, Executive Committee and other Committees for their time and invaluable advices on the Housing Society’s strategic development throughout the year. I am also thankful to the Management for formulating the corporate development strategies and business plans and for leading a wonderful team of more than 1,400 colleagues through such a tough year.
In 2023, the Housing Society will celebrate its 75th anniversary. We are looking forward to joining hands with all stakeholders to contribute to the housing industry and create even more quality homes for those in need. Through dedication and versatility, I am confident that the Housing Society, together with all the people of Hong Kong, will continue to thrive in the new chapter of Hong Kong.
