Housing for the Elderly in Hong Kong - Literature review Example

Literature Review Name: Institution: Course: Lecturer: Date: Housing for Elderly in Hong Kong Introduction With the advancement of technology, growing population and immigration, the aged persons are left unattended. This is a rampant social problem in many countries. Hong Kong being a nation with a very high population has not been left behind. Therefore, there has been a need to focus on the wellbeing of the elderly who forms part of the marginalised groups. Literature Review The literature review for housing programs in Hong Kong has been adopted from reviewing past literature, books, research report as well as other relevant reports. A thorough comparison has been conducted between Hong Kong programmes with other countries such as Singapore, Japan and Netherlands. There has been a clear definition of housing for the elderly. This is stated as dedicated project targeting person in the age of 60 or above in Hong Kong. Provision of facilities and services is done to the targeted demographic group. The objectives of the research are quite expounded. The objectives confine themselves to the key purpose of conducting the research. The main objectives covered includes; examination of existing housing situation as well as welfare policy in Hong Kong. Secondly, conduct comparative analysis of Hong Kong with other nations regarding housing for the elderly. The countries that have been included in the research include Singapore, Japan and Netherlands. Thirdly, to perform a thorough investigation of various factors influencing house affordability as well as preferences in Hong Kong. Fourthly, conduct an evaluation of different stakeholders regarding housing provision for elderly in Hong Kong. The research focuses on the overall population in Hong Kong. This is important since it acts as a base or foundation of research. It means that formulating a proper and adequate housing policy for the nation is quite inevitable. The concern is that the government of Hong Kong has never been fully engrossed in embracing systematic and comprehensive housing policy to curb the foreseen ageing problem. A sizeable number of elderly populations have been living in deplorable conditions. According a survey conducted in 2009, 37.7 percent were living in public rental houses and 15.9 percent in subsidised sale flats, while 12,600 and 12,700 elderly and potentially elderly populations dwells in temporary housing units (Census and Statistics Department, 2009). The main objective of the housing scheme is to facilitate better living of the elderly in the community or at the auspices of their families. This is carried through various housing programmes and schemes. Housing programmes is carried out by Hong Kong Housing Authority (HKHA) as well as Hong Kong Housing Society (HKHS). In conjunction with the government, HKHS launched a programme to cater for the elderly needs from year 2003. The scheme which operates under concept of ‘lease-for-life’ aims at providing ‘healthy aging’ as well as ‘aging in place’ for all elderly persons in Hong Kong. The elderly in Hong Kong also benefit from social care services offered by the Social Welfare Department in conjunction with Non-Governmental Organisations. In that regard, two programmes targeting the elderly has been put forward; that is community support services and residential care services. The programmes objectives are to instil prolonged healthy living by the elderly by promoting their well-being through provision of broad of services. The second objective is provision of residential care which suits all needs of the elderly at the times of needs. These programmes are aimed at providing high living standard for elderly persons either at their homes or at their preferred living places. A comparative review of the housing programmes in Hong Kong, Japan, Singapore and Netherlands shows that Hong Kong, Singapore and Japan put more emphasis on family care and that young persons are selected to take care of the elderly (Mitchell Piggott 2003). On the other hand, Netherlands puts more emphasis on social care as well as long-term care whilst young persons are not necessary the care givers. The four countries (especially Japan) continue to provide proper housing schemes as well as the financial support to the elderly (Mitchell & Piggott, 2004). They also stress for facilities improvement. Preferences and Affordability Japan, Netherlands and Hong Kong considered the need of introducing Reverse Mortgage Scheme for the elderly. The aim of the scheme was mainly to instil preferences and affordability for the elderly. Basically, reverse mortgage mandates individuals convert their own equity or possession in-to income stream without necessarily surrendering their home units. No repayment is done by the elderly. The elderly is promised tenure though out his life. In case the borrower (elderly) is unable to settle the ‘loan’ the lender takes possession of the house (Bartel & Daly 1980). There has not been a clear definition of the elderly in Hong Kong. However according to Hong Kong government, an elderly person eligible to benefit from welfare-sector services as well as medical and healthcare services fall under the age of 60 and above. According to statistics, ageing population accounted to 18.2 percent of the population in 2011. It is estimated that by 2036 the ageing population will account to 31 percent of the entire population (Census and Statistics Department, 2011). In Hong Kong, demand for housing is quite high. Most residents of Hong Kong prefer converting their wealth to housing and therefore they acquire houses. The price of houses is Hong Kong is higher compared to other cities such as New York, Singapore and London. This means that the residents of Hong Kong are better place to embrace reverse mortgage for their elderly. Reverse Mortgage Programme was launched in Hong Kong in 2011 by Hong Kong Corporation Limited. This programme mandated borrowers to acquire funding with their housing units acting as collateral. At the termination of the mortgage, the borrower has exclusive right to do termination of the terms of mortgage via payment of all outstanding balances to a participating bank though reverse mortgage scheme. In case the borrower finds it unnecessary to pay the amounts, it is the sole responsibility of the bank to sell the house in order to recover the amount due (Bartel & Daly 1980). By the year 2011, 47 percent of Hong Kong’s household assets were non-financial (Hong Kong Census and Statistics Department 2011). This is as compared to Japanese household which accounted to 51% and Australian household which accounted to percent in 1996. This means that Hong Kong figures are comparable to the figures of foreign entities implementing Reverse Mortgage. Therefore, Hong Kong has allthe resources needed to introduce Reverse Mortgage scheme (Bartel & Daly 1980). Research Methodology The methodology of research is very detailed. It has been conducted in three parts i.e. review and comparisons, survey of the elderly and interviews with experts as well as stakeholders’ representatives. Comparative analysis is done between Hong Kong and the other nations. This means that the research is not limited to a single location. Moreover, the input of the target group is put into consideration. In addition, the opinion of the experts forms provide supplementary information aiding the process. 1. Review and comparisons – this entails assessment of current situation of elderly in Hong Kong with the examination of housing programmes offered by HKHA and HKHS. Review of welfare policy is also done. The main objective is identification of social welfare as well as housing programmes offered to the target group, degree of coordination and potential shortfalls. The housing policies of other developed nations are also under review. This ventures on how such countries conduct provision of housing for the elderly. The reasons as to why these countries have been selected are as follows: Netherlands has an ideal housing policy which is worth emulating; Japan contains a substantial number of the elderly whilst Singapore has the same features as Hong Kong in terms of economic and demographic factors (Mitchell Piggott 2003). 2. Survey of the elderly – this is done through interviewing the older generation and potential elder persons with a view of ascertaining the affordability. The prevailing factors considered relates to economic aspects such as income and expenditure, demographic aspects such as household size, as well as health and environmental aspects such as health and hygiene. The collection of data for the elderly is done through stratified random sampling. Sampling is performed across public, private and non-for-profit sectors within the selected districts. This touches Hong Kong Island, Kowloon, New territories East and West. The approach conducted is via different centres of the elderly thorough these districts. The research team uses SPSS software, while correlation analysis is used to perform correlation analysis between housing affordability, housing preferences and as well as other variables. In order to gain in-depth comprehension regarding preferences and affordability more interviews were conducted in 2012 targeting the elderly between 57 to 69 years. The insights gained from this particular interview in paramount and could form a basis for supplementary information to quantitative statistics within face-to-face interview survey. 3. Interviews with stakeholders’ representatives and experts – this is solely to identify major problems associated with fulfilling housing needs for elderly as well as existing housing policy. The experts in this case include the government, representatives of HKHS and social survey agency representatives. The opinion of the experts and stakeholders representatives is sought in order to prioritise factors gained at stage two of the workshop. The experts are therefore to give suggestions about the likely initiatives put forward by different stakeholders to accommodate the elderly, housing types as well as tenure. The research team will then formulate recommendations and come up with proposed guidelines regarding better housing for elderly populations basing on affordability and preferences. References Hong Kong. Census and Statistics Department, 2011. An Outline of Statistical Development. Census & Statistics Department. Hong Kong. Census and Statistics Department, 2009. An Outline of Statistical Development. Census & Statistics Department. Bartel, H., Daly, M. and Wrage, P., 1980. Reverse Mortgages: Supplementary Retirement Income from Homeownership. Journal of Risk and Insurance, pp.477-490. Mitchell, O.S. and Piggott, J., 2004. Unlocking housing equity in Japan. Journal of the Japanese and International Economies, 18(4), pp.466-505. Read More

The main objective of the housing scheme is to facilitate better living of the elderly in the community or at the auspices of their families. This is carried through various housing programmes and schemes. Housing programmes is carried out by Hong Kong Housing Authority (HKHA) as well as Hong Kong Housing Society (HKHS). In conjunction with the government, HKHS launched a programme to cater for the elderly needs from year 2003. The scheme which operates under concept of ‘lease-for-life’ aims at providing ‘healthy aging’ as well as ‘aging in place’ for all elderly persons in Hong Kong.

The elderly in Hong Kong also benefit from social care services offered by the Social Welfare Department in conjunction with Non-Governmental Organisations. In that regard, two programmes targeting the elderly has been put forward; that is community support services and residential care services. The programmes objectives are to instil prolonged healthy living by the elderly by promoting their well-being through provision of broad of services. The second objective is provision of residential care which suits all needs of the elderly at the times of needs.

These programmes are aimed at providing high living standard for elderly persons either at their homes or at their preferred living places. A comparative review of the housing programmes in Hong Kong, Japan, Singapore and Netherlands shows that Hong Kong, Singapore and Japan put more emphasis on family care and that young persons are selected to take care of the elderly (Mitchell Piggott 2003). On the other hand, Netherlands puts more emphasis on social care as well as long-term care whilst young persons are not necessary the care givers.

The four countries (especially Japan) continue to provide proper housing schemes as well as the financial support to the elderly (Mitchell & Piggott, 2004). They also stress for facilities improvement. Preferences and Affordability Japan, Netherlands and Hong Kong considered the need of introducing Reverse Mortgage Scheme for the elderly. The aim of the scheme was mainly to instil preferences and affordability for the elderly. Basically, reverse mortgage mandates individuals convert their own equity or possession in-to income stream without necessarily surrendering their home units.

No repayment is done by the elderly. The elderly is promised tenure though out his life. In case the borrower (elderly) is unable to settle the ‘loan’ the lender takes possession of the house (Bartel & Daly 1980). There has not been a clear definition of the elderly in Hong Kong. However according to Hong Kong government, an elderly person eligible to benefit from welfare-sector services as well as medical and healthcare services fall under the age of 60 and above. According to statistics, ageing population accounted to 18.

2 percent of the population in 2011. It is estimated that by 2036 the ageing population will account to 31 percent of the entire population (Census and Statistics Department, 2011). In Hong Kong, demand for housing is quite high. Most residents of Hong Kong prefer converting their wealth to housing and therefore they acquire houses. The price of houses is Hong Kong is higher compared to other cities such as New York, Singapore and London. This means that the residents of Hong Kong are better place to embrace reverse mortgage for their elderly.

Reverse Mortgage Programme was launched in Hong Kong in 2011 by Hong Kong Corporation Limited. This programme mandated borrowers to acquire funding with their housing units acting as collateral. At the termination of the mortgage, the borrower has exclusive right to do termination of the terms of mortgage via payment of all outstanding balances to a participating bank though reverse mortgage scheme. In case the borrower finds it unnecessary to pay the amounts, it is the sole responsibility of the bank to sell the house in order to recover the amount due (Bartel & Daly 1980).

By the year 2011, 47 percent of Hong Kong’s household assets were non-financial (Hong Kong Census and Statistics Department 2011).

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