My Personal Experience in Hong Kong
Building Densely, Stabilizing Housing Prices, and Seizing Future Opportunities
Switzerland and Hong Kong could hardly be more different at first glance – geographically, historically, politically. And yet both highly developed societies face the same challenges: housing shortages, rising prices, and a population that continues to grow despite limited land. Both regions attract people from all over the world, creating prosperity but also putting enormous pressure on the housing market.
A look at Hong Kong – an extremely dense yet highly innovative housing market – can help Switzerland better understand potential solutions and gain new perspectives.
Skyscrapers in Hong Kong
- Due to the mountainous terrain, buildable land is extremely rare, leading to extreme vertical growth.
- The International Commerce Centre (484 m) is the city’s tallest building.
- A total of 569 skyscrapers (>150 m).
- Top position: Hong Kong leads the world rankings ahead of Shenzhen and New York City.
- High density: The city has more skyscrapers (over 200 m) than the whole of Europe.
Hong Kong’s Extreme Density – and Its Recipe for Success in Housing Development
Hong Kong is one of the most densely populated regions in the world. In some districts, such as Kowloon, up to 45,000 people live per square kilometer. At the same time, the city operates one of the most extensive public housing programs worldwide. Roughly half of its population lives in public or subsidized housing – an exceptionally high share among industrialized regions.
The government pursues clear objectives: providing affordable rental housing for low-income households, offering subsidized ownership options for the middle class, and ensuring a stable property market. Public rental flats, subsidized sale units, and privately financed apartments coexist in a transparent, structured system.
This strong state involvement stabilizes prices in the essential housing segment and ensures reliable supply. At the same time, the privately financed segment remains expensive – a parallel familiar to Switzerland.
The Dark Side: Poverty Despite High-Rises
Despite Hong Kong’s impressive housing output, the city still faces stark social contrasts. About 1.3 million people live below the poverty line, many in extremely cramped “subdivided units”—tiny, often windowless spaces that barely offer basic living conditions. Rents in the private sector are unaffordable for many, leading to an everyday reality where luxury and extreme poverty exist side by side.
The government’s efforts are substantial, yet even they cannot fully offset the market forces in a global financial hub. Switzerland can learn from this: public housing alone cannot solve supply shortages when demand is exploding and land availability is extremely constrained.
Switzerland in Comparison: Housing Shortages Despite Prosperity
Switzerland, too, is experiencing tightening pressure on its housing market. Demand has been growing for years, driven by immigration, economic strength, and ongoing urbanization. At the same time, supply remains limited.
The vacancy rate is just 1 %, a critical value far below the 2 % threshold for a relaxed market. Some regions report vacancy rates below 0.5 %, meaning virtually no available apartments. Residential property prices continue to rise, especially for family-sized apartments with three to four rooms, which are in particularly short supply.
Immigration further amplifies demand. Net migration remains high, and newcomers require housing immediately—exacerbating shortages and pushing prices upward.
Densification Pressures – But in Different Forms
A 2025 ETH study shows that densification in Switzerland is implemented quite differently depending on the region. In core cities such as Zurich and Basel, new housing often comes from replacement buildings, vertical expansions, or industrial land conversions. In suburban municipalities, however, construction still frequently takes place on undeveloped land.
Despite a decline in overall new construction, the housing stock continues to grow in most urban areas—just more slowly. Zurich, for example, saw more than 14,000 people displaced by demolitions
or full renovations between 2015 and 2020, while Geneva saw fewer than 500. Particularly affected are low-income households, older residents, asylum seekers, and various minority groups.
This shows that densification is socially sensitive—but ultimately unavoidable.
What Switzerland Can Learn from Hong Kong
1. Clear Target-Group Policies in Housing Development
Hong Kong uses a transparent, three-tier system:
- Public rental housing for low incomes
- Subsidized ownership programs for the middle class
- Private market for higher incomes and investors
This segmentation brings clarity and planning stability. Switzerland could benefit from a more coordinated national approach to subsidized and affordable housing.
2. A Stronger State Role in Land Policy
Much of Hong Kong’s land is publicly owned, allowing the government to steer housing development strategically.
In Switzerland, fragmented and mostly private land ownership slows down development. More flexible instruments—such as time-limited leasehold (Erbpacht) models—could incentivize building without heavy market intervention.
3. Treating Densification as an Opportunity
Hong Kong’s skyline demonstrates that density and high living standards can coexist—when planning is intelligent.
Switzerland can grow inward more effectively by clarifying building zones, speeding up planning processes, encouraging vertical expansion, and mitigating social downsides of redevelopment.
4. Stabilization Through Supply, Not Price Caps
Hong Kong shows that extensive public housing stabilizes the basic segment while leaving the premium segment to the market.
For Switzerland, the lesson is clear:
The solution is not rigid price control but increasing supply—smartly, sustainably, and socially responsibly.
Conclusion: Two Models – One Shared Challenge
Switzerland and Hong Kong face the same fundamental dilemma:
How to create enough housing without compromising quality of life or social stability?
- Switzerland struggles with structural bottlenecks and slow processes.
- Hong Kong creates large amounts of housing but often at the cost of humanity and social balance.
My liberal perspective suggests: More supply, fewer barriers where regulation blocks innovation, and targeted support where the market reaches its limits.
Combining the strengths of both systems could guide Switzerland toward a future-proof solution: Embracing densification, exploring new housing models, planning efficiently, and respecting social realities.
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