A great fire in a refugees’ squatter area on Christmas, 1953, rendered 50,000 people homeless. The government responded with the first resettlement estate. More and more public and private housing was developed. Education and other services also expanded rapidly.

As the children of the postwar immigrants grew up, they put down roots in Hong Kong. By 1971, the majority of the population was born in Hong Kong.

Vast shantytowns of squatter huts were frequent victims of fires and floods.