Osler's Razor

Fascinating! So many different factors at work here. The fact that the government owns all the land seems especially important. When I was studying in Germany, my main research project was a comparison of environmental impacts of the two different economic systems (west - capitalism, east - communism). The east was far worse than the west. The results pointed to the best solution being a very well-regulated private ownership system (regulation being key).

All I know for sure is, my blood pressure went up just looking at those tight spaces.
 

First, I have been to Hong Kong and there is a LACK of LAND. It is an island so everything is tall and small and expensive. I once stayed in HK for two weeks on a job and was in corporate housing. I think you could put two of the studios apartments inside the footprint of my current master bedroom.

Hong Kong proper had expanded some into mainland China but not much. There has also been a lot of dredging to create/enlarge the islands. Until 2000 it was a British Colony so I don't think communism can be blamed. And since the return to China there has been a lot of resistance to be wholly Chinese.

The original airport in HK was right in the middle of town. As the plane landed you were looking into the windows of places like you picture. It was disconcerting to look out the window of a 747 and into someones living space. They then built a beautiful new shiny airport on an island that was created by dredging (lack of land).

These cage apartments also have a hole in the floor for the toilet, no nice porcelain to place ones bum upon.