ABSTRACT
This chapter demonstrates that ahead of the 1984 Sino-British Agreement, Hong Kong had already set in motion a number of social processes that eventually brought important bearings on the housing market. It examines three processes, namely political restructuring, economic restructuring and the emerging middle class. The middle class has traditionally been the most neglected group in Hong Kong. Political uncertainties in the 1980s have aggravated the problem, with an average of 50,000 professional and managerial personnel leaving annually. The Hong Kong economy has been undergoing profound structural changes that carry an immense impact on both the socio-economic structure as well as the housing market. The Asian economic meltdown of 1998 might provide the best catalyst for Hong Kong’s economic transformation. The economic success of Hong Kong drew much international attention in the 1970s in both the academic and business circles.
