Need and Affordable Housing in Hong Kong – 2011 Report

Policy for affordable housing in Hong Kong primarily centers on the provision of public rental housing, PRH (as the Tenant Purchase Scheme has been cancelled), whilst that of subsidized homeownership (Home Ownership Scheme, HOS) has been suspended since the announcement made by then-Secretary for Transport and Housing Michael Suen in November 2002.

The reason of the suspension of HOS is that, Hong Kong’s economy had undergone a prolonged period of downturn since her handover to China in 1997. Housing prices consistently fell and the public began to question the merits of subsidized ownership housing (Home Ownership Scheme, HOS).

With private housing prices getting lower, HOS had become yet another competitor in an already-diminishing housing market.

In response to political pressure from property developers and homeowners, the HKSAR Government had noticeably reduced the production of HOS flats since 2001 and eventually suspended its production and sale altogether in 2003

However, as property price started to rebound from its lowest point in 2004, it has continued to soar, even more so in recent years.

Housing has become less affordable to many Hong Kong citizens. Whether or not the government should subsidize homeownership (e.g. to bring back HOS) with public resources has become a heated topic in the community.

Also read: Asia-Pacific: Housing Scenario and Need for ACASH