Here comes my sixth and last yearly statement of the Housing Society’s annual report. The year 2023/24 marked a period of significant and challenging transformations, not only for the world, but also for Hong Kong and the Housing Society. Where there’s a will there’s a way. It was through the collective wisdom and intelligence of each and every one of us that we successfully navigated all these challenges with determination and perseverance. For the Housing Society, 2023/24 was a year filled with the collective accomplishment of transforming dreams, aspirations and plans into remarkable results.

At the beginning of the fiscal year, the world welcomed the much-awaited good news as the coronavirus pandemic was pronounced no longer a global health emergency by the World Health Organisation in May 2023. Throughout the year, there were further encouraging developments in the global economy which demonstrated resilience and strength, albeit with modest growth. Meanwhile, the threat of climate change has become more pressing, with 2023 being the planet’s warmest year on record.

Back in Hong Kong, our home city, life has regained a sense of normalcy, yet the path to economic recovery has been more gradual than anticipated, posing a complex business landscape. At the Housing Society, with the concerted efforts of stakeholders, we have not only adapted to but also harnessed the changes to drive continuous innovation in our operations amid a volatile operating environment. With innovation lying core at heart, we carried forward our role as the city’s “housing laboratory” and several substantial achievements were made in 2023/24 – the installation completion of Modular Integrated Construction (MiC) modules of two pioneering projects, the launch of the long-awaited Subsidised Sale Flats (SSF) project Hemma Amber and our well-thought-out sustainability strategy and programmes executed in business planning and operations fronts. They are a testament to our enduring mission of “Creating Homes for Sustainable Living”, also a vision that has guided our 75-year journey and continues to shape our path forward.

In 2018, when I assumed the role of Chairman at the Housing Society, the local economy was robust with the property market scaling unprecedented heights. The surge in prices made housing increasingly unaffordable for many Hong Kong residents. As a housing innovator and provider, the Housing Society takes the housing needs of Hong Kong people to heart. We proactively embarked on a diverse array of new housing initiatives, breaking new ground without any historical precedent to follow. One of these pioneering initiatives was our MiC project, which was a novel concept in public housing back then. Step by step and hand in hand, we have stridden over unprecedented challenges, making history along the way. Today, six years later, I am thrilled to share the fruit of this groundbreaking experiment. Two MiC projects, namely Chung Yuet Lau and Eminence Terrace I, were completed in March 2024 and put up for sale in February 2024, respectively.

Chung Yuet Lau stands out as the first MiC project of the Housing Society when we took the lead and responded to the Government’s call. This pioneering approach has not only contributed to better quality control and higher construction efficiency, but also enhanced site safety and environmental protection.

To fulfill the home ownership aspiration of the community, the SSF project has become one of our major businesses, and a new development – Hemma Amber, the fifth SSF project since 2017, was open for application during the year. Over 13,000 applications were received for its 422 units, representing an oversubscription of nearly 30 times. This proved the quality yet affordable housing of the Housing Society continued to win trust and interest from the public.

The Housing Society transcends the role of a mere housing solution provider, anticipating and addressing the community’s needs with empathy and foresight. Significant efforts are dedicated to developing projects that enable residents to age in place. Blissful Place, the third project under the Senior Citizen Residences Scheme completed last fiscal year and welcomed its first batch of residents in the third quarter of 2023. Besides, adhering to our belief to create an integrated and inclusive community for people of all ages, we expanded the pilot intergenerational solidarity programme from Jat Min Chuen to Ka Wai Chuen to promote community bonding and social inclusion.

Driven by vision and foresight, meticulous planning in human resources, financial and risk management are all in place at the Housing Society. I am glad to see all key functional areas operated smoothly and achieved significant progress during the year, with a strong team of dedicated staff. Some 20 housing projects are now under planning or construction, providing more than 17,000 subsidised units in the coming five years. This marks a historic high in flat production volume since our establishment, underscoring our commitment to adapting and thriving in the face of change.

VIABLE HOUSING SCHEMES TO SUPPORT THE GOVERNMENT

As a self-financing organisation, the Housing Society utilises its own resources to provide the community with suitable and affordable housing solutions in line with the Government’s housing policy. Recognised for its track record of timely and quality project delivery, the Housing Society was entrusted by the Government during the year to undertake a site at Yau Kom Tau in Tsuen Wan for the development of nearly 2,000 Starter Homes units. Close liaison with relevant Government authorities has been going on regarding some technical arrangements and we have commissioned engineering consultants to conduct feasibility studies.

Dedicated Rehousing Estates (DRE) also achieved a significant milestone during the year. Eminence Terrace I in the Hung Shui Kiu/Ha Tsuen New Development Area (NDA), mentioned earlier, became the first completed SSF portion of a DRE project, offering 300 units for sale. Another DRE project on Pak Wo Road in Fanling will offer about 1,200 subsidised units for rent and for sale. The site will also accommodate another new project under the Senior Citizen Residences Scheme with around 260 elderly units. As the Government is driving the Northern Metropolis to be a beacon of innovation and technology, the Housing Society makes significant contributions through its three DRE projects in the area, altogether offering about 7,000 residential units.

Public housing units are valuable social resources. With prudence as our core value, the Housing Society is committed to safeguarding the rational use of these resources and allocating them to those who are in genuine need. In a move to reinforce this commitment, a series of tightened measures to combat tenancy abuse have been implemented since December 2023, including enhancements to the “Well-off Tenants Policy” which came into effect in April 2024.

DRIVING INNOVATION FOR SEAMLESS OPERATIONS

Aspiring to be a world-class housing solution provider and innovator, the Housing Society excels in its systematic yet innovative operations, making an exemplary impact on the industry. During the year, the Housing Society is proud to be among the industry pioneers in introducing a brand new digital “Smart Site Safety System” in all projects to enhance construction management and site safety. The application of the Internet of Things (IoT) has also been actively incorporated into operations, particularly on the property management front. A feasibility study on bringing IoT and advanced technology to our upcoming flagship retail mall in Kai Tak was completed, further extending the use of technology for smart and intelligent building operations.

During the year, the Housing Society created another milestone in driving a wider and smarter use of technology among industry peers. We opened the new regional office in Fanling, with two floors dedicated to the PropTech co-working space which commenced operation in mid-2023 in collaboration with the Cyberport. As a collaborative ecosystem of converging the PropTech sector, the PropTech co-working space being the first of its kind in the city incubates young technology entrepreneurs and encourages local start-ups to develop PropTech solutions.

FOSTERING A CARING COMMUNITY

The projects built by the Housing Society are not merely shelters for its residents but also a sanctuary where residents find compassion, warmth, happiness, support and a sense of belonging, and call them “homes”. Our multi-disciplinary CES (Caring, Engaging and Smart) Team continues to offer regular support to needy residents at rental estates, engages them in estate-based group activities and connects them with the community, strengthening bonding among the neighbourhood and generating greater social capital in the community. By orchestrating the diverse community resources, Cho Yiu Chuen is infused with a mind-friendly concept.

Over the years, I have personally visited several families living in rental estates. One memorable encounter was with an elderly household who moved into an accessible flat at the redeveloped Ming Wah Dai Ha, and another heartwarming experience was meeting a young family living in the “T-Home” unit at Yue Kwong Chuen. Witnessing their genuine fondness for their new homes and the radiant smiles on their faces enlightened me about the true value that lies within the collective efforts of our dedicated team.

These efforts also marked the establishment of the HS Academy Alumni Club in 2019, which aims to provide a platform for the recipients of the Hong Kong Housing Society Award, our scholarship scheme, and other young people to care, serve and give back to the community where they grew up, fostering a culture of volunteerism.

75 YEARS OF PARTNERSHIP

The 75^th anniversary of the Housing Society in 2023 was a milestone marked by a series of events. These celebrations, part of our Diamond Jubilee festivities, were an opportunity to convey our gratitude and share our joy with everyone. I had the honour of being part of the team to commemorate the organisation’s 70-year journey in 2018. The excitement intensified in 2023 as we celebrated 75 years of accomplishments, joined by a diverse range of stakeholders who have stood shoulder to shoulder with us throughout the years.

Amidst the celebrations of the 75^th anniversary, we once again recognised the importance of sustainability. That gave the birth to the six-month community ESG programme, part of the 75^th anniversary celebrations launched in July 2023, to encourage our rental estate households to contribute to the sustainable development and carbon neutrality of Hong Kong. Joined by over 13,000 households from its rental estates, the Housing Society is proud to achieve the reduction of nearly 900,000 kilograms of carbon emissions through the programme, the largest estate-based carbon reduction campaign in Hong Kong.

PRIORITISING SUSTAINABILITY FOR CONTINUAL SUCCESS

Sustainable development is an integral part of the Housing Society’s strategic planning. During the year, the Housing Society took a major step to formulate a formal sustainability framework, encompassing the robust governance structure and strategy under three pillars, namely “Sustainable Homes”, “Low-carbon Transformation” and “Future-fit Capabilities”, covering 13 focus areas. These pillars and focus areas are the driving forces that will steer the Housing Society towards responsible operations and the realisation of a sustainable future for all generations.

In line with our 75^th anniversary theme, “Creating Homes for Sustainable Living”, the Housing Society creates sustainable homes for residents of all ages and abilities to promote social inclusion and intergenerational solidarity. The upcoming DRE project in Fanling and the redevelopment project of Ming Wah Dai Ha will be the exemplary projects, featuring a mixed development model.

SOUND FINANCIAL PLAN FOR FUTURE DEVELOPMENT

As a not-for-profit organisation operating on self-financing principles, the Housing Society’s financial health remains robust, underpinned by our commitment to ensuring that all housing projects are well planned, and finances are managed prudently. During the year, a significant transformation took place within our governance structure. A new, permanent Finance Committee was established to advise the Executive Committee on the overall financial landscape of the Housing Society. This development affirms our pursuit of excellent corporate governance, adaptability to change and sound risk management practices that lay the foundation for the organisation’s long-term success.

In the face of the substantial funding needs for upcoming unprecedented yet robust flat production programmes, alongside the planned redevelopment of our aged rental estates and numerous innovative plans to serve our residents and the community, the Housing Society has already made the necessary preparations and is considering various financing options, with a decision expected to be made within this year. During the year, thanks to the staunch support of the Government, we are pleased to have succeeded in obtaining the Public Sector Entity status, which reflects that the credit profile of the Housing Society is similar to that of the Government and is conducive to our discussion of financing options with financial institutions.

PURSUIT OF EXCELLENCE, THE KEY TO SUCCESS

Over the year, the Housing Society has been recognised with numerous awards and accolades, both locally and internationally. Notably, our commitment to excellence in corporate governance has been recognised by The Hong Kong Institute of Directors with the “Directors of the Year Award 2023” as well as the “Excellence in Board Diversity” award.

Rome was not built in a day. My sincere gratitude goes to all the former and current Members of the Supervisory Board, Executive Committee and other Committees for their strategic and visionary leadership which has propelled the Housing Society to new heights year after year. I would also like to express my heartfelt thanks to the contributions made by the Management and the exceptional team of more than 1,500 colleagues who consistently uphold uncompromising quality standards.

It has always been my belief that true leadership is exemplified through an organisation’s ongoing success. A leader serves as a catalyst for growth, empowering each individual to rise to their full potential. As my departure from the Chairmanship approaches, I am confident that the shared vision of the Housing Society as “housing laboratory” will continue to thrive and the strength of the team would drive the Housing Society towards even greater success, going from strength to strength and achieving the impossible. It has been an honour and a privilege to lead this incredible team, and I am truly blessed with the dedication, passion, action and vision every single member of the wonderful team has shown in serving our community. Looking ahead, I eagerly anticipate witnessing the Housing Society’s growth and success beyond boundaries, serving a broader population of Hong Kong people, both within our community and throughout the Greater Bay Area when feasible.

Walter Chan Kar-lok, SBS, JP
Chairman

14 June 2024