The average waiting time for a public rental flat increased to 5.8 years, up from 5.6 years in the past quarter, just shy of the government's target of capping waiting times at six years.
The Housing Authority attributed that to "construction delays."
It said the goal of keeping waiting times under six years remained changed.
Latest statistics showed 5,800 applicants moved into rental units in the fourth quarter, a 66 percent rise over 3,500 in the third.
Despite this, the average waiting time rose to 5.8 years. Single elderly applicants faced, on average, a four-year wait.
The impact of fewer available flats for allocation in the first three quarters of 2023 continued to be reflected in the average waiting time in subsequent quarters.
Of 13,700 units allocated last year, just 800 were new ones and the rest were refurbished flats, which have longer waits.
Delays caused by a fatal accident involving a contractor, Aggressive Construction, further contributed to the increase in waiting time, the authority said.
Opening up Lai Yiu Estate in Lai King to applicants moving in was delayed from the third to the fourth quarter, and there was a similar delay involving over 6,700 units at Fu Tip Estate in Tai Po.
The authority expects the average waiting time to decrease to 4 years by 2026/27 with the completion of various public estates and 30,000 light public housing units.
News of the increase came as the Construction Industry Employees General Union reported that around 100 former employees of a contractor, Fung Cheung Kee, which is facing liquidation, had sought its assistance over outstanding salaries amounting to more than HK$150 million.
Fung Cheung Kee had been involved in nine private construction projects before going into liquidation.
Cheung, a company veteran of over 30 years who had been put in charge of a subcontractor, said Fung Cheung Kee owed HK$71 million for 17 projects carried out over a space of six to seven years, causing many workers to lose their jobs.
The union expressed concern over the impact on frontline workers as the landowner and main contractor had failed to pay the subcontractors.
It called on the Labour Department to establish a task force to address the issue and prevent a domino effect of subcontractors closing down due to a lack of funds.
The department expressed "deep concern" over the impact of Fung Cheung Kee's liquidation on its and its subcontractor's employees.
About 40 inquiries have been received by the department, and around 50 employees have sought help.
