From micro- to nano-segregation: policy-led vertical urbanism in Hong Kong

Abstract

While Hong Kong is an extremely wealthy city, where one in seven residents is a millionaire, the city also has one of the most unaffordable housing markets in the world. This policy review examines how the development of various housing policies since the 1950s have contributed to segregation and housing inequality. After exploring various aspects of Hong Kong’s housing market, we introduce a typology of segregation, the study of which would allow a deeper understanding of the current housing situation. Building on the existing studies of micro-segregation and our recent observation, we further introduce the concept of nano-segregation. Micro- and nano-segregations take place in Hong Kong both horizontally and vertically. They manifest the severe socio-spatial inequalities that result from the aspirations expressed in the policies, and from the benefits to individuals who have gained from the changes.

Keywords:

• Hong Kong
• housing policy
• housing inequality
• micro-segregation
• nano-segregation
• vertical urbanism

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 Gini coefficient is the measurement of inequality of income distribution across a population, with 0 representing total equality and 1 representing total inequality.

2 In 2016, for all domestic households, the Gini coefficient of the original household income, post-tax household income, the post-tax post-social transfer household income and the post-tax post-social transfer per capita household income was 0.539, 0.524, 0.437 and 0.420 respectively. However, in the same year, for the economically active households, the Gini coefficient was 0.482, 0.464, 0.422 and 0.401 respectively.

3 Since Hong Kong is a metropolitan city, it is not valid to compare its Gini coefficient with other countries. However, based on the original household income, the Gini coefficient of Hong Kong in 2016, Chicago in 2015, Los Angeles in 2015, New York City in 2015, San Francisco in 2015 and Washington, DC in 2015 was 0.539, 0.531, 0.551, 0.521 and 0.535 respectively. In this regard, Hong Kong may not appear to be the most unequal amongst other wealthy cities in the world. In 2015, the original household income in the United States was 0.479, which demonstrates that income disparities in large cities were higher than the national average.

Furthermore, in 2016, for economically active households, based on per capita household income, the Gini coefficient of Hong Kong and Singapore was 0.474 and 0.458 respectively. As for post-tax post-social transfer household Income for both regions, the Gini coefficient was 0.401 and 0.402 respectively.

4 The exchange rate used is US$1 to HK$7.85, and US$1 to £0.81, as at 1^st August 2022.