Hong Kong Homes Shrunk by a Quarter Over 3 Decades, Think Tank Says

Hong Kong homes have significantly shrunk in size over the last three decades, with the average floor area decreasing by a quarter, according to a new report from the Hong Kong Future Economy Institute. The think tank's research, titled "Smaller and Smaller," challenges the government's claims of increased housing supply by revealing a "quantity illusion" that arises from evaluating supply purely by the number of units built.

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If the number of new units rises while average size falls and the share of family-sized units contracts, the real gains represented by the recovery in supply need to be assessed more carefully.

The study found that the average floor area of newly completed units has fallen from 50.4 square meters in 1995 to 37.2 square meters in recent years, marking a 26% reduction. While the total number of housing units completed in 2024 approached 1995 levels, the total floor area delivered was only two-thirds of the 1995 figure and just 39% of the peak recorded in 2000. This indicates a substantial decline in actual living space provided to residents.

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The unit count has nearly recovered; the living space has not.

The report further details how this trend affects different housing types. Public rental flats have shifted from family-sized units to "micro units," with average sizes decreasing by one-third. Similarly, "nano-flats," defined as units under 18.6 square meters, have become more common in the private market, while large private homes now constitute a marginal share of new supply. The researchers argue that relying solely on unit counts systematically overstates the actual housing services delivered, masking the real reduction in living space available to the population.

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The quantity illusion is not merely a measurement problem. It shape