Latest news with #HomeOwnershipScheme
South China Morning Post
16-05-2025
- Business
- South China Morning Post
Cheaper private flats in Hong Kong don't erase need for subsidised housing
– the lowest demand since the programme known as the . This seeming decline in popularity, alongside the increased affordability of private housing, has led some to claim that subsidised housing is no longer needed. Hong Kong's latest ballot for the sale of second-hand subsidised housing was oversubscribed by just five timesthe lowest demand since the programme known as the White Form Secondary Market Scheme , started about a decade agoThis seeming decline in popularity, alongside the increased affordability of private housing, has led some to claim that subsidised housing is no longer needed. There has indeed been a growing overlap between Hong Kong's subsidised and private housing markets. In 2021, both markets saw first-hand transactions valued at around HK$3-5 million (US$384,250-640,430). This widened to HK$1-5 million last year, as private home prices fell by close to 30 per cent from the peak in September 2021. This suggests increasing options at the lower end of the private housing market for those eligible for public housing. On closer scrutiny, however, the options may not be as plentiful. Last year, there were only 521 first-hand transactions in the HK$1-3 million range in the private housing market – but 106,000 applications to buy subsidised housing under the Home Ownership Scheme Moreover, the more than 40 per cent of Hong Kong households earning less than HK$25,000 a month can only afford homes that cost no more than HK$3 million. For them, subsidised housing is still the primary route to home ownership. The mission of public housing to fulfil the homeowning aspirations of low-to-middle-income families remains relevant. Subsidised housing also facilitates the turnover of public rental housing. It gives renting households with improved financial conditions an opportunity to buy a home – releasing their rental flats for those in greater need. Even with the crackdown on tenancy abuse, the number of public rental flats recovered from the serving of termination notices is far surpassed by the number released by those who had moved on to buy subsidised flats – by anywhere from 47 per cent to 323 per cent in each of the last five financial years.
South China Morning Post
24-03-2025
- Business
- South China Morning Post
Hong Kong urged to offer rich tenants priority ‘carrot' to buy subsidised flats
Well-off Hong Kong public housing tenants should be given priority to buy subsidised homes as an incentive to move up the housing ladder, a lawmaker and a concern group have said, after authorities announced a plan to increase rent and evict rich households. Advertisement Housing panel lawmaker Lo Wai-kwok on Monday called on authorities to offer well-off tenants the 'carrot' of priority in purchasing subsidised flats to encourage them to own homes. Under the Home Ownership Scheme, 40 per cent of subsidised flats are reserved for households with elderly members and families with newborns. These groups will also be given priority when it comes to selecting homes. 'We can consider the current policies for buying subsidised housing, for example prioritising families with elderly or young couples with children. Can we extend these benefits to well-off tenants?' Lo, also a Housing Authority member, told a radio show. 'However, there also needs to be a balance between benefiting the richer tenants and those waiting to purchase subsidised flats. I believe the Housing Authority will take these into consideration.' Advertisement Man Yu-man, chairman of the Federation of Public Housing Estates, agreed these advantages could encourage rich tenants to buy homes.
South China Morning Post
18-02-2025
- Business
- South China Morning Post
Task force to look into cutting construction costs for Hong Kong public flats
Published: 8:30am, 18 Feb 2025 Housing authorities will set up a task force to look into cutting costs for building public rental flats, including design, materials and procedures, with the outlay for each home rising by 5.4 per cent to nearly HK$1 million (US$128,205) while Hong Kong faces a massive deficit. In a move welcomed by industry professionals, the Housing Bureau will establish a task force led by a director-grade official to see if there is room to squeeze the construction costs of various works. The Development Bureau earlier told the Post that it was conducting a study to devise measures to bring down costs. Authorities revealed in January that the cost of building a public flat had risen from HK$920,000 last year to HK$970,000. The cost of building subsidised flats offered under the Home Ownership Scheme also rose from HK$1.09 million to HK$1.15 million, sparking concern in society. 'We will review how direct procurement and adjustments to the processes can save us manpower and costs,' a government source said. Secretary for Housing Winnie Ho Wing-yin said on Monday that the second generation of 'modular integrated construction' (MiC) was cheaper now than when the government first adopted the technique. The MiC method employs free-standing, integrated modules from mainland Chinese factories that undergo quality inspections before being installed on-site.
