Yes, the housing allowance has dropped over the past year but you can still get a nice place to live at little or NO cost to yourself. You can rent a nice place free of charge or buy a unit costing you only 10 to 30 cents on the dollar depending on price. Only S/O's for the first two years have it tough if they want or need a larger unit.
They only pay housing allowance in HK because everyone is an expat living in a very high cost place for accomodation.