Today, we are amazed by how artificial intelligence (AI) may reshape the way we work and live, embodying the power of turning bold visions into reality. Just as the early pioneers of AI defied the odds to lay the foundations of today’s transformative technologies, the Hong Kong Housing Society, as a “housing laboratory”, harnesses innovation to address challenges. By embracing perseverance and adaptability, the Housing Society transforms new ideas into groundbreaking developments, proving that even the seemingly most difficult challenges can be overcome. This blend of vision and resilience paves the way for a brighter, more sustainable future in housing.

In 2024/25, the Housing Society’s business development navigated a challenging yet successful year. By staying committed to our goals and refusing to be held back by foreseen or unforeseen hurdles, we overcame uncertainties and accomplished new initiatives. Together, we marked several new milestones in our journey during the year, notably by delivering the first completed Dedicated Rehousing Estate (DRE) project, Casa Eminence, at Hung Shui Kiu/Ha Tsuen New Development Area (NDA) as well as the decanting block Yue Ying Lau for the redevelopment of Yue Kwong Chuen, and the launch of two exciting Subsidised Sale Flats (SSF) projects, namely Hemma Fab in Fanling and Hemma Emerald in Kwun Tong. These achievements, resulting from years of strategic planning and the collaborative efforts of our diverse teams, provide modern, comfortable homes to those in need while reinforcing our position as an innovative housing provider.

QUALITY HOMES IN THE PIPELINE

After the successful launch of Hemma Fab and Hemma Emerald for application in March 2025, three DRE projects, including the remaining stock of Eminence Terrace I, Delight Terrace at Kai Tak and Sierra Terrace in Fanling, have made their units available for sale. Sales and marketing efforts are expected to stay busy in the years ahead. We have also implemented numerous initiatives to contribute to the sustainable development of our community, including promoting ageing in place, adapting innovative technological solutions like Modular Integrated Construction (MiC), continuing effective stakeholder engagement, and integrating sustainability into our strategic planning. Witnessing years of efforts pay off reminds us that every contribution matters, and that what seemingly impossible becomes achievable through perseverance.

In line with the Government’s housing policy, viable housing projects have been planned and developed to provide more than 17,000 housing units over the next five years. While facing operational challenges with certain major contractors, our colleagues have devised strategies to minimise disruptions and ensure project completion that serves the best interest of the Housing Society to provide public housing. To date, we have 15 projects in various construction phases, all of which achieved satisfactory progress during the year.

Subsidised Sale Flats

The Housing Society currently manages the construction of six SSF projects across Fanling, Kai Tak, Anderson Road Quarry and Yuen Long, contributing to over 5,900 subsidised sale units to be completed between 2026 and 2030, with three projects completed their application phases: Hemma Fab on Jockey Club Road in Fanling, and Hemma Amber and Hemma Emerald at Anderson Road Quarry sites R2-3 and R2-4 respectively. These three SSF projects, contributing over 2,000 affordable yet quality units slated for completion between 2026 and 2027, have received enthusiastic market responses.

Dedicated Rehousing Estates

Eight DRE projects are currently being planned or constructed, with three located in the Northern Metropolis including Casa Eminence at Hung Shui Kiu/Ha Tsuen NDA, Casa Sierra at Pak Wo Road in Fanling and one project in Kwu Tung North NDA. The five urban DRE projects are Casa Delight at Kai Tak Area 1E Site 1 and the projects in Ma Tau Kok, Chuk Yuen United Village, Ngau Chi Wan Village, and Cha Kwo Ling Village. These DRE projects will increase the housing supply by about 8,000 units in phases over the next five years, offering a good mix of rental and SSF units.

During the year, DRE saw the achievement of the completion of its first project, Casa Eminence, comprising a 300-unit SSF block Eminence Terrace I (Phase 1A), and a 375-unit rental block Eminence Tower 1 (Phase 1B). Resident intake has started for both buildings, emerging as a new vibrant community in the area. Casa Sierra at Pak Wo Road is expected to be the next completed development, delivering 1,200 flats in 2025/26.

Redeveloping Aged Rental Estates

When it comes to estate redevelopment, we aim to provide our tenants with a more enjoyable and sustainable living environment while optimising the development potential of the sites. As an organisation that offers holistic support beyond physical spaces and cares about the well-being of our tenants, the Housing Society makes every endeavour to identify decanting sites to rehouse affected residents before kickstarting any redevelopment programme, ideally within their original communities where they have resided for decades.

Our property management teams support future residents well before project completion, focusing on rental estate tenants who have resided in the estates over half their lives and will be rehoused in the redeveloped estates. Support is provided through resident briefings, personal communication, district stakeholder engagement, psychological assistance from dedicated social workers, and financial aid. These comprehensive efforts demonstrate our dedication to the well-being of the residents.

Yue Ying Lau, a newly built decanting block for Yue Kwong Chuen, our forthcoming estate redevelopment project, was completed during the year, offering 600 rental units ready for resident intake in the latter half of 2025. At Kwun Tong Garden Estate Phase II, the decanting block on Ting On Street is scheduled for completion in 2026, and we just unveiled the rehousing arrangements to the affected households in June 2025. For Ming Wah Dai Ha in Shau Kei Wan, foundation works for the Phase II Redevelopment are progressing steadily according to schedule.

Housing for the Elderly

To promote ageing in place, the Housing Society has extended its efforts in providing elderly housing within public rental estate. Sixty-four brand new age-friendly units at Chung Yuet Lau, completed in March 2024, have been handed over during the year to tenants who are now thriving in their new lives in a safe and thoughtfully designed environment, with an enhanced sense of well-being. As a move-in incentive, these elderly underoccupation (UO) households received lifetime exemption from rent and rates. The surrendered UO units were then reallocated to other families in need, optimising the use of public housing resources.

The 888 “lease-for-life” elderly housing units from three projects under the Senior Citizen Residences Scheme continued to operate smoothly during the year. A new addition to its portfolio, with 261 units incorporating age-friendly design, will be available as part of the Pak Wo Road project Casa Sierra in 2026.

FULL IMPLEMENTATION OF “WELL-OFF TENANTS POLICY”

In response to increased public expectations for fair allocation of public housing resources, considerable efforts have been made to expedite the full implementation of the “Well-off Tenants Policy” (WTP), which was introduced in 2018, through a phased exercise of a new tenancy arrangement beginning September 2025. To facilitate tenants’ transition to the new agreement with WTP clauses, we have adopted a three-step simple procedure that balances customer-friendliness with legal grounds: “Offer of a New Tenancy by the Housing Society”, “Acceptance of the Offer by Continuing to Pay Rent by the Tenant” and “No Signature Required for the new Tenancy Agreement”. This streamlined approach advances the completion timeline of the full implementation of WTP to end of 2026. To ensure residents fully understand this new arrangement, we have commenced resident briefings with some 200 briefings planned before September 2025, alongside other stakeholder engagement sessions since March this year. A dedicated webpage, a hotline and service ambassadors in rental estates have also been launched and engaged.

Since 2023, we have intensified our efforts to combat tenancy abuse through various tightened measures. These include proactively verifying tenants’ ownership of domestic property through the Land Registry’s search system and exploring collaboration with relevant authorities in the Mainland and Macau. We have also established the “Housing Resources Management and Operations” team, staffed with professionals including former disciplined service members with extensive investigative expertise, to examine suspected and reported cases thoroughly. Our enhanced multi-pronged measures include conducting more frequent home visits outside office hours, supported by the digital home visit management system, and strengthening training for frontline staff. Each recovered unit is important to help those who have been waiting for years in the queue for public rental housing, reinforcing our commitment to ensuring that public housing serves its intended purpose for eligible people in need in the community. About 160 public rental units have been recovered since 2018, doubling the total number of flats in Chung Yuet Lau.

UNITED ACROSS GENERATIONS

The current direction of the Housing Society to promote ageing in place is to foster intergenerational integration in project design and resident services. Our aim is to create a liveable environment across generations, from the elderly, middle-aged, young adults, to children. Over the past year, the CES (Caring, Engaging and Smart) Team organised over 330 networking activities, motivating more than 1,600 tenants to complete training as core volunteers. With professional support from social workers, residents now offer timely assistance to one another, making the community a caring place. Remarkably, some volunteers were once isolated individuals who felt loneliness and homebound. Through our staff’s dedication and perseverance, these previously hidden residents have reconnected with the community, enabling them to contribute positively to their neighbourhoods.

During the year, the CES Team has garnered support from nearly 470 organisations across various sectors, including a partnership to implement a comprehensive fitness programme across our rental estates and elderly housing projects. This initiative elevates both the physical and social well-being of residents and has earned prestigious international recognition.

Intergenerational living is also reflected in our epoch-making approach to commercial leasing. While maintaining a high occupancy rate in our commercial portfolio, the Housing Society’s flagship shopping mall KEyPoint at the Kai Tak Area 1E Site 1 project began leasing earlier this year. Set to open in early 2027, this 300,000-square-foot mall will be Hong Kong’s first mall themed around “building an intergenerational living hub”. This innovative concept fosters interactions across generations, essential for sustainable living. We shall unlock a harmonious retail experience through this project by introducing a creative and novel combination of merchants, services, products, leisure facilities and activities that cater to all age groups.

Privileged to be represented at the “Task Force on Promoting Elderly-friendly Building Design” of the Government, the Housing Society is pleased to share our experience and will continue incorporating universal and accessible design features in our future housing projects wherever feasible.

WEAVING OUR FUTURE TOGETHER

At the Housing Society, sustainability is not just a slogan but a principle integrated into our business and daily operations. With a target to reduce energy consumption by 20 per cent by 2029/30, based on the 2012/13 baseline, we have already achieved a 31 per cent reduction, surpassing our original goal well ahead of schedule. This remarkable milestone reflects our unwavering commitment to environmental stewardship and fuels our determination to push further and strive for greater contribution to sustainability in the years ahead.

In pursuit of further reducing our carbon footprint, the Housing Society is introducing the “Whole Life Cycle Carbon Assessment” (WLCA) across all stages of planning, design, construction and future management of our projects. The Ming Wah Dai Ha Phase II Redevelopment stands as our pioneering WLCA initiative. During the year, we integrated carbon measurement methodology, refined baselines, and green material specifications into the tender documents for the project’s main contract. We have also developed a carbon tracking platform to collect and monitor construction emissions data. In the coming year, we will closely monitor the achievement of our pre-set carbon reduction targets and develop a comprehensive strategy for applying WLCA in future projects, paving the way for net-zero emission buildings.

In the face of accelerating global climate change, we must act now to promote and practise sustainable living. Everyone has a role to play in championing sustainability. The Housing Society Exhibition Centre, opened in 2018 and renovated in 2024, serves as a community education platform for local housing development, inspiring the next generation to embrace sustainable living. During the year, the Centre hosted a series of themed activities and workshops, including a programme on climate change. By partnering with Government departments and non-profit organisations, the programme has successfully raised awareness of climate change impacts and the importance of taking collective action.

FINANCIAL POSITION

Financial sustainability is crucial for an organisation to thrive. As a self-financing organisation, the Housing Society has maintained sound and prudent financial and fund management. As of 31 March 2025, our net assets stood at HK$48.6 billion, with a net surplus of HK$1,232 million recorded for the fiscal year. Total income increased by 65 per cent, mainly driven by higher returns from our investment portfolio and proceeds from our strategic divestment of non-core commercial properties. During the year, we secured HK$12 billion in syndicated loan facilities from 12 banks, strengthening our financial liquidity as we execute peak construction activities to meet the community’s housing needs.

AN INCREDIBLE JOURNEY

Excellence is not an act, but a habit. The Housing Society’s dedication to excellence over the years has garnered local and international recognitions. Our achievements span across sustainable development, architectural planning, property management, elderly services, and corporate communications. We were honoured to share our stories and experiences with diverse professionals and stakeholders, serving as speakers and hosting visits to our housing projects. As a trailblazer in the housing industry, we are dedicated to ever-raising standards of quality and service.

As we conclude another rewarding yet demanding year, we are reminded once again of the importance of determination and innovation, especially when the circumstances ahead seem uncertain. When we transform our thoughts, we redefine possibilities, and shape the outcome of the Housing Society’s challenging journey ahead. I extend my sincere gratitude to the Members of the Supervisory Board and Executive Committee for their invaluable guidance and support, which have empowered us to navigate challenges. Credit also goes to the management team and all colleagues who consistently strive for excellence, turning our vision into reality.

Our efforts do not end here. To gain a grander sight, we must climb to a greater height. The harvest season of our housing production has only just begun, and we must stay vigilant to ensure the successful and seamless delivery of all our committed projects. Many successes begin with a leap of faith, and through this courage, we achieve remarkable feats, enhancing our residents’ well-being with visionary, innovative, and sustainable housing solutions that foster an intergenerational living environment. Together, we embrace growth in line with the Housing Society’s mission, achieving more for the people we serve, creating greater social value and bringing our vision to life. James Chan Yum-min
Chief Executive Officer and Executive Director
13 June 2025