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Hong Kong’s wage disparity is worse than ever. Justin Heifetz finds out why.
Lau Chung-ki is worried about the future of Tin Shui Wai. Property developer
The Link REIT is ready to open the first phase of an upscale market at the Tin
Shing Court public housing estate around Christmas. There will be a “SoHo”
area for upmarket food and beverages, and a seafood street with chemical-free
freshwater fish. Sounds great, but there’s just one problem. Tin Shui Wai has
always been one of Hong Kong’s poorest areas and many of its inhabitants just
can’t afford it.
Lau, who works for the Tin Shui Wai Community Alliance, says that the Link
is monopolizing options for the public housing estates that accommodate the
city’s working poor—the Link owns five of Tin Shui Wai’s six wet markets and this
upscale market isn’t a new construction but instead a major expansion of
an existing wet market. Unless the government steps in, this gentrification is
likely to push up prices for everyone in the area. “The Link’s development is highly
focused around a shopping mall,” says Lau. “We’re fighting for more options—
like wet markets governed by the Housing Authority.” It might be the only way to
keep prices low.
But the problem isn’t only in Tin Shui Wai anymore—Hong Kong is becoming
increasingly and more drastically polarized between rich and poor. The wealth
gap has long been a problem plaguing the city—and it’s growing larger than
ever. As the minimum wage—$32.50 an hour—lags behind inflation, the number
of working poor in the city continues to shoot upwards.
The Top-Heavy Territory
In 2014, Hong Kong’s top one percent of earners owned 52.6 percent of the city’s
wealth—income, investment and more—up from 35.4 percent in 2000, says Credit
Suisse. That’s staggeringly high compared to the developed world: In fact,
Hong Kong ranks third-highest in wealth disparity after Turkey and Russia.
How rich are the rich? Just last week, Hong Kong tycoon Joseph Lau Luenhung
set world records when he bought his seven-year-old daughter a $375 million
flawless blue diamond ring at a Sotheby’s auction in Geneva. A day before that
he’d bought a pink diamond at Christie’s for $222 million. And a day later, he sold
the Mass Mutual Tower in Wan Chai for a record-breaking $12.5 billion.
77.5%
of the city’s total wealth
is owned by the top 10%.
22.5%
of Hong Kong’s wealth is left to the rest.
Oh, and the top 1% of Hong Kong
owns 52.6% of the city’s total wealth.
Source: Credit Suisse
10 HK MAGAZINE FRIDAY, NOVEMBER 20, 2015