And the next problem is high land rent. This is due to the strong competition for space, limited supply on land and economic growth. Because of the higher economic growth, there are greater investments in housing development. Hong Kong has assigned a high percentage of investment to the development of housing, both in the public and the private sectors.
There is also unplanned development in Hong Kong. Development are controlled by landforms. For example, roads are laid out along contours and conform to the shape of the waterfront. As such, many land lots are in odd shapes. Streets are narrow and there are few open spaces. Examples include Eastern Street, Western Street, High Street and First Street in Western district.
In fact, some of the problems are not essential but government still need to face. For instance, lack of essential services and facilities. As a result of urban sprawl, residential land use may take up locations that do not have a proper provision of basic facilities. Furthermore, lack of legislation is a next problem. The lack of legislation in terms of the management of communal areas and the maintenance of buildings will lead to the rapid deterioration of the environmental quality in many buildings.