Why Some Hong Kong Apartments Are the Size of a Car Parking Space and Cost 500 a Month

Have you ever heard of an apartment being the size of a car parking space, and costs only 500 to rent? The reality in Hong Kong is that such units exist, and they have raised eyebrows both within the region and internationally. This article will explore the reasons behind these tiny apartments, their economic impact, and the lifestyles associated with them.

Understanding the Phenomenon

For many residents, living in a space the size of a car parking space seems incomprehensible. A parking space typically measures around 8 feet by 16 feet (approximately 128 square feet), and in Hong Kong, such a space for 500 HKD per month sounds like a deal too good to be true. However, the reality often involves units that are actually smaller than the car itself.

The Economics of Apartments

The reason behind these cramped living conditions is quite simple. Land scarcity is one of the primary factors contributing to the tight spaces. According to recent statistics, the rent for an 80sqft apartment in Hong Kong can range from 5000 to 10000 HKD per month. Comparatively, a 128sqft parking space for 500 HKD is a significant juxtaposition.

Some landlords and property owners opt to subdivide their units to maximize profits. For example, a 700sqft unit rented for 12,000 HKD per month can be split into four smaller units, each costing 4,000 HKD, totaling 16,000 HKD per month. Alternatively, splitting the same 700sqft unit into five smaller units can bring in 17,500 HKD per month, a considerable increase from the original.

Government and Market Dynamics

The issue is not solely related to land scarcity but also artificial scarcity. The government's limited capacity to build public housing without disrupting its financial stability plays a crucial role. More public housing often means less revenue from land sales. Therefore, the creation of more affordable living spaces, such as the ultra-small units, helps ensure broader market influences.

Moreover, personal circumstances often lead to smaller living spaces. Families who fall out with each other may opt to stay in such units rather than become homeless. These situations highlight the social and emotional aspects of Hong Kong's unique housing challenges.

Personal Experiences

First-hand accounts of living in such conditions offer valuable insights. For instance, the author of this article lived in a 80sqft flat for a while, a situation somewhat akin to a crash pad while waiting for better accommodations. The location in North Point ensured minimal commute time, and the author was able to tolerate the cramped space due to spending much time outside.

The reality of such living conditions is far harsher for many residents. These tiny units, where people pay up to 500 HKD a month, serve as a stark reminder of the housing challenges in Hong Kong. The question of where to find these 500 HKD apartments highlights the broader issue of accessibility and affordability.

As Hong Kong continues to grapple with these housing issues, the phenomenon of ultra-small apartments and the 500 HKD monthly rent will likely remain a significant talking point in the city and the international community.