Privatising management services in subsidised housing in Hong Kong

Privatisation of services from the public sector is topical currently mainly because of the potential savings and efficiency to be gained. In the aspect of property management, the Hong Kong Housing Authority owns more than 600,000 units of public housing flats and the requirement for good and efficient property management services is enormous. The current policy of privatising these services to the private management agents has proved to be a correct direction in terms of retaining the growth of the public sector, and also improving the level of services to the tenants. While the privatisation scheme might bring in more opportunities for growth of the property management companies in the private sector, it is more important for the government to forge a proper transitional arrangement to switch to full private management in order not to endanger the already low morale in the public sector.