A popular Chinese proverb says, “A journey of a thousand miles begins with a single step”. This profound saying serves as an inspiring reminder that every great accomplishment starts with a simple, yet crucial, first step. Embracing this wisdom, the Housing Society, commonly known as the “housing laboratory”, is always taking bold steps to try out innovative projects and pioneering approaches. By initiating different groundbreaking housing schemes across different eras, each bold stride we take is a testament to our unwavering commitment to addressing the dynamic housing needs of Hong Kong’s diverse population with forward-thinking strategies.

During the year, we remained steadfast in our belief that every remarkable achievement begins with a humble, yet essential stride. The two Modular Integrated Construction (MiC) pilot projects of the Housing Society had achieved a new milestone. Chung Yuet Lau, built with MiC in steel, was completed, while the concrete MiC project, Phase IA of Hung Shui Kiu/Ha Tsuen New Development Area (NDA) is poised for imminent completion. Additionally, we proudly launched Hong Kong’s first PropTech co-working space, marking a pivotal step in pioneering innovative technologies within the housing industry.

In the face of a tumultuous economic landscape, characterised by soaring construction costs, declining property prices and elevated interest rates, we not only achieved our planned accomplishments but also surpassed them, setting new benchmarks in the process. These achievements underscore our dedication to leveraging innovative strategies to navigate and thrive in challenging environments, affirming our role as a trailblazer in the housing sector.

With robust housing development plans well in place, project planning and construction advanced significantly during the reporting period. While the Housing Society is gearing up for its construction peak with some 20 projects being planned or constructed, a series of measures were rolled out to enhance the efficiency, quality and safety of project management, alongside many other initiatives implemented to promote intergenerational harmony, advocate ageing in place and maintain a sustainable operating environment.

Small steps make big changes. At the Housing Society, safety is not just a priority – it is a core value that drives our operations. We are pioneering the use of the digital “Smart Site Safety System”. With this new system, data on on-site construction work are transmitted to a centralised management platform for real-time safety monitoring and identification of potential safety hazards. However, we are not stopping there. We are also collaborating with the Hong Kong Applied Science and Technology Research Institute (ASTRI) to trial new digital devices on mobile cranes at a project to monitor metal fatigue as one of our site safety initiatives that underscore our commitment to leveraging technology to create safer construction environments.

HOUSING PROJECTS IN FULL STEAM AHEAD

In support of the Government’s housing policy, viable housing projects were formulated. Majority of the projects under planning or construction are progressing well in full steam, and we envisage that some 17,000 housing units will be offered in the coming five years covering Subsidised Sale Flats (SSF), Dedicated Rehousing Estates (DRE) and Rental Estate Redevelopment, as well as elderly housing projects.


Subsidised Sale Flats

The fifth SSF project, Hemma Amber, located at Anderson Road Quarry Site R2-3, concluded its application in December 2023 with an enthusiastic market response of an oversubscription of nearly 30 times for its 422 units.

The Housing Society is currently developing six SSF projects, located across Jockey Club Road in Fanling, Kai Tak Area 2B Site 1, Anderson Road Quarry and Yuen Lung Street in Yuen Long, altogether contributing to over 5,900 subsidised sale units between 2025 and 2029.


Dedicated Rehousing Estates

Significant progress was made in eight DRE projects, including Pak Wo Road in Fanling, Kai Tak Area 1E Site 1, Hung Shui Kiu/ Ha Tsuen NDA, Kwu Tung North NDA, Ma Tau Kok and three urban squatter areas at Chuk Yuen United Village, Ngau Chi Wan and Cha Kwo Ling Villages. Our DRE projects, commissioned by the Government, will further boost the housing supply by around 10,000 units in phases over the next five years, offering a diverse mix of flats that comprise rental, SSF units and flats under the Senior Citizen Residences Scheme.

Among them, Eminence Terrace I, a 300-unit SSF block of the Phase 1A of DRE Casa Eminence located at Hung Shui Kiu/Ha Tsuen NDA, was launched for sale in February 2024 with flat selection to take place in June this year.


Redeveloping Aged Rental Estates

Double ageing is a pressing issue in Hong Kong as both the population and residential buildings are ageing at the same time. With 40 per cent of our rental estates built some 50 years ago, the Housing Society has completed the review on the redevelopment plan so the estates’ infrastructure and facilities will move with the times to meet the needs of our residents and facilitate ageing in place.

During the year, foundation works for the Phase II Redevelopment of the Ming Wah Dai Ha (MWDH) commenced after demolition completion in mid-2023. The decanting blocks at Ting On Street and Shek Pai Wan Road were undergoing superstructure works while land grant application for the redevelopment of Yue Kwong Chuen was in good progress.


Housing for the Elderly

Being a “housing laboratory”, the Housing Society pioneered a “lease-for-life” elderly housing scheme, known as the Senior Citizen Residences Scheme in 1999 for the middle-income people aged 60 or above in response to the challenges brought about by an ageing population. By integrating housing, recreation, healthcare and social support services under one roof, the Scheme is proved to be a success. Blissful Place in Hung Hom, the third project under the Scheme, welcomed its first batch of tenants in the summer of 2023, achieving a leasing rate of over 90 per cent. Together with Jolly Place in Tseung Kwan O and Cheerful Court in Ngau Tau Kok launched in 2003 and 2004 respectively, the Scheme is providing a total of 888 elderly-friendly units.

Three more projects under the Scheme in Fanling, Kwun Tong and Shau Kei Wan will commence services in the coming years. Looking forward, the Housing Society will strive to offer as many units under the Scheme as possible in new developments, creating inclusive and diverse communities that promote intergenerational harmony.

Meanwhile, Chung Yuet Lau, a 10-storey rental block offering 64 age-friendly units, was completed. Lifetime full rent and rates exemption were offered to eligible elderly under-occupation (UO) households as an incentive to surrender their UO units and all units have been allocated.

BUILDING HOMES FOR ALL GENERATIONS

The Housing Society is committed to creating age-friendly communities that cater to seniors, adults, youth and children, creating vibrant communities where elderly residents and young families coexist happily despite their diverse needs. During the year, over 300 networking activities were organised by the CES (Caring, Engaging and Smart) Team, fostering mutual support among tenants within their neighbourhood. Piloted in 2021 with community partners, the intergenerational solidarity programme at Jat Min Chuen fosters harmony and mutual support among tenants through fun games and sports such as Nordic Walking and Mölkky, which have been well received by residents. Year-round intergenerational activities were held to strengthen bonding of the younger and senior generations. Riding on its success at Jat Min Chuen, the programme was further extended to another rental estate, Ka Wai Chuen, to benefit more residents.

For the elderly who have resided in their homes for decades, it is always their desire to age in place. Ageing in place holds significant importance as it allows the elderly to maintain their independence, dignity and sense of belonging in familiar surroundings. In the familiar embrace of their own homes and communities, they can maintain cherished social ties and navigate the golden years of their lives with grace and contentment.

As a pioneer in elderly housing, the Housing Society strives to support ageing in place through various innovative initiatives. The CES Team continued to conduct visits and organise activities for elderly tenants to foster mutual support in rental estates. Assessments and recommendations by occupational therapists on home improvement works were also arranged to enhance home safety for the elderly in need.

Technology also plays a vital role in supporting ageing in place. The establishment of the Living Lab in Gerontechnology for Age- Friendly Home in 2022 was another innovative step in promoting age-friendly homes leveraging collaboration with different industry partners and non-government organisations. Being the city’s first accredited Living Lab, three projects were initiated during the year, assisting the elderly to age in place with the use of user-driven and innovative gerontechnology products.

The 2023 Policy Address proposed a series of cross-sectoral policies and measures to cater to the needs of the elderly in the community. In support of the Government’s policy of ageing in place, a “Task Force on Promoting Elderly-friendly Building Design” was established in this context. As a member of the Task Force, I was delighted to join the first meeting in February 2024, sharing the Housing Society’s experience in developing elderly housing projects as well as studying and implementing universal and accessible designs.

SUSTAINABILITY REMAINS A TOP PRIORITY

In the face of escalating extreme weather events and complex environmental challenges, the Housing Society has proactively integrated Environmental, Social and Governance (ESG) parameters into its business operations. As part of our corporate-wide sustainability roadmap strategy, the Housing Society will incorporate the “Whole Life Cycle Carbon Assessment” (WLCA) for some future developments, striving to infuse green elements from early planning to design, procurement, construction and the future management of the buildings with MWDH Phase II Redevelopment as the pilot project. Following the completion of Stage I WLCA, Stage II carbon control documentation preparation and a digital carbon assessment platform for the project’s foundation and superstructure works had commenced during the year, representing another major step of our carbon reduction journey.

During the reporting year, the Housing Society, in collaboration with Cyberport, celebrated Hong Kong’s first PropTech co- working space. By funding and incubating innovative local start-ups, the Housing Society encouraged the development of PropTech products such as smart construction and building management solution by carrying out proof of concept and validation, marking a pivotal step in creating opportunities for business sustainability through new technologies, and building an ecosystem of the PropTech sector in the Northern Metropolis. The co-working space had welcomed 13 start-ups since its inception.

In the face of global climate change and the long-term development needs of society, there is a pressing need to promote sustainability. We believe each of our rental estate residents could play a part in the advocacy for sustainability. A six-month Community ESG Programme was launched in the second half of 2023. Through the programme, we encouraged our residents and staff to develop green and healthy living habits in their daily life through gamification. Participants’ green actions were digitised and they were rewarded with various discounts on spending and fabulous prizes after completing various “carbon reduction missions” related to clothing, food, living and walking. The programme was well received with active participation from over one-third of our rental estate households, marking one of the highlights of the 75^th anniversary celebration of the Housing Society.

Sustainable development is closely related to the well-being and future prospects of the next generation. As a vital community education platform on local housing development, the Housing Society Exhibition Centre, opened in 2018, inspires the next generation to embrace sustainable development. During the year, the Centre was transformed and re-opened in March 2024 with a captivating new look, infusing a more interactive and immersive experience to facilitate the holistic understanding of the younger generation and the public about the mission, vision and work of the Housing Society.

FINANCIAL POSITION

As a self-sustaining organisation, the Housing Society has maintained sound finance and fund management. As of 31 March 2024, our net assets stood at HK$47.4 billion. A net surplus of HK$456 million was recorded for the fiscal year. Despite short-term volatility, the long-term performance of our investments remained resilient, outperforming the benchmarks. With an unprecedented yet robust construction peak in the pipeline, the Housing Society has already made necessary preparations in various aspects in order to address short-term cash flow gaps.

75 YEARS OF COMMITMENT

Seventy-five years ago, the Housing Society was born with a clear mission to address the housing needs of the public. Despite changing times, the demand for quality housing remains as strong as ever. Our 75 years of commitment to building quality homes for Hong Kong has been instrumental in shaping the housing landscape in Hong Kong, a feat made possible by the invaluable support of every community member. To convey our gratitude to all stakeholders, we unveiled a year-long 75^th anniversary programme, a commemorative story book, alongside a range of promotions on mass media and social media, covering audiences and stakeholders in depth and breadth.

I would like to extend my profound gratitude to the Members of the Supervisory Board and Executive Committee for their stewardship which has led to the steady growth of the Housing Society amid challenges and turbulence over the past year. Credit also goes to the management team and all colleagues who always go the extra mile to serve residents with excellence. Their efforts are indispensable in providing quality and sustainable homes to the people of Hong Kong. While we are well-prepared to create another new height for the unprecedented construction peak, the Housing Society will continue to be visionary in exploring new possibilities and achieving new accomplishments. The Housing Society, with its eyes set on the future, is poised to take many more big steps forward for the betterment of Hong Kong through pioneering cutting-edge housing solutions, achieving remarkable feats and adding splendour to our earmarked reputation as Hong Kong’s “housing laboratory”.


James Chan Yum-min
Chief Executive Officer and Executive Director

14 June 2024