Home Ownership Scheme
Encyclopedia
The Home Ownership Scheme (HOS; ) is a subsidized-sale programme of public housing in Hong Kong
managed by the Hong Kong Housing Authority
. It was instituted in the 1970s as part of the government policy for public housing, to give the poor a chance to purchase as well as rent public housing from the government.
Under the scheme, the government sells apartment
flats to eligible low-income residents at prices far below the overall market, with discounts usually between 30 and 40 percent, and also provides subsidies on the land value. It restricts reselling of the units in the second-hand market to low-income residents. For certain projects, the Housing Authority entered into arrangements with local private developers to provide property for sale under the Private Sector
Participation Scheme (PSPS).
Between 1995 and 2000, the government also offered the Sandwich Class Housing Scheme
for lower middle class
families whose incomes exceeded the Home Ownership Scheme requirements, but still had trouble affording private housing. In 2003, falling real estate values led the government to pause the construction of new Home Ownership Scheme estates indefinitely, although the scheme remains in force at existing estates.
, Shun Chi Court (順緻苑) in Kwun Tong
, Shan Tsui Court (山翠苑) in Chai Wan
, Chun Man Court (俊民苑) in Ho Man Tin
, Sui Wo Court
(穗禾苑) in Sha Tin
and Yue Fai Court (漁暉苑) in Aberdeen.
Average unit selling prices were HK$120,000. However, citing the fact that flats from the Mei Sun Lau development were selling at prices above the prevailing market prices, press favourable to the Chinese authorities criticised the Government of profiteering from this scheme.
In 1987, forecasting that the demand for home-ownership was on the rise, the Government launched a plan to redevelop the older housing estates, and introduced a greater choice of apartments available for purchase by public housing tenants. Initially, 2,000 scheme members would be given a HK$50,000 interest-free loan with which to make the downpayment on their new private-sector homes.
In December 1991, there was a huge rush to buy 6,452 Housing Authority properties in 17 projects. Flats were to be sold at a discount of 40%, the most attractive for several years. The cost was approximately one-third compared with properties in similar private developments.
scandal which resulted in the resignation of Housing Authority Chief Rosanna Wong, and a censure for Housing Director Tony Miller. The construction of 2 blocks of Yu Chui Court in Sha Tin was delayed as it had to be demolished and rebuilt at an estimated cost of HK$250 million. The Wai Kee Group was implicated, and some of its companies were delisted from Government projects following the publication of the Strickland Report.
In 2002, developers complained of weakness in property prices, claiming the housing marketplace was largely distorted by excessive unfair competition from schemes such as the HOS. It was pointed out that a public rental tenant moving into a second-hand Home Ownership Scheme flat would receive three lots of subsidies. Government halted the PSPS, developments which were in progress at the time were either transformed into public housing, or sold off to private developers. Construction of new HOS estates was suspended in November 2002, and it was also announced that the TPS would end.
, who subsequently sold off half share to Sun Hung Kai
. In 2004, the consortium announced the demolition of these buildings to make way for luxury apartments, to be faced with huge popular outcry about the needless destruction of "perfectly good buildings" to satisfy "corporate greed". In an unprecedented about-turn, the developers withdrew the plan on 10 December 2004.
Public housing in Hong Kong
Public housing in Hong Kong is a set of mass housing programmes through which the Government of Hong Kong provides affordable housing for lower-income residents. It is a major component of housing in Hong Kong, with nearly half of the population now residing in some form of public housing...
managed by the Hong Kong Housing Authority
Hong Kong Housing Authority
The Hong Kong Housing Authority is the main provider of public housing in Hong Kong. It was established in 1973 under the Housing Ordinance and is an agency of the Government of Hong Kong...
. It was instituted in the 1970s as part of the government policy for public housing, to give the poor a chance to purchase as well as rent public housing from the government.
Under the scheme, the government sells apartment
Apartment
An apartment or flat is a self-contained housing unit that occupies only part of a building...
flats to eligible low-income residents at prices far below the overall market, with discounts usually between 30 and 40 percent, and also provides subsidies on the land value. It restricts reselling of the units in the second-hand market to low-income residents. For certain projects, the Housing Authority entered into arrangements with local private developers to provide property for sale under the Private Sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
Participation Scheme (PSPS).
Between 1995 and 2000, the government also offered the Sandwich Class Housing Scheme
Sandwich Class Housing Scheme
Sandwich Class Housing Scheme was a scheme by the Hong Kong Housing Society for building apartments that were sold to middle-income families, i.e. sandwich class, at concessionary prices during the 1990s. The purchases were subject to a five-year resale restriction. The first development, Tivoli...
for lower middle class
Lower middle class
In developed nations across the world, the lower middle class is a sub-division of the greater middle class. Universally the term refers to the group of middle class households or individuals who have not attained the status of the upper middle class associated with the higher realms of the middle...
families whose incomes exceeded the Home Ownership Scheme requirements, but still had trouble affording private housing. In 2003, falling real estate values led the government to pause the construction of new Home Ownership Scheme estates indefinitely, although the scheme remains in force at existing estates.
History
The first such plan was launched in 1978 and the first batch of flats became available in 1980, the first estates being Yuet Lai Court (悅麗苑) in Kwai ChungKwai Chung
Kwai Chung is a town in the New Territories of Hong Kong. Together with Tsing Yi Island, it is part of the Kwai Tsing District of Hong Kong. Kwai Chung is the site of the container port. It is also part of Tsuen Wan New Town. In 2000, it had a population of 287,000...
, Shun Chi Court (順緻苑) in Kwun Tong
Kwun Tong
Kwun Tong is an area in Kwun Tong District, situated at the eastern part of the Kowloon Peninsula, and its boundary stretches from Lion Rock in the north to Lei Yue Mun in the south, and from the winding paths of Kowloon Peak in the east to the north coast of the former Kai Tak Airport runway in...
, Shan Tsui Court (山翠苑) in Chai Wan
Chai Wan
Chai Wan , formerly mistakenly known as Sai Wan , lies at the east end of the urban area of Hong Kong Island next to Shau Kei Wan. The area is administratively part of the Eastern District, and is a mosaic of industrial and residential areas...
, Chun Man Court (俊民苑) in Ho Man Tin
Ho Man Tin
Ho Man Tin is a mostly residential area in Kowloon, Hong Kong, part of the Kowloon City District.-History:The original area of Ho Man Tin was quite different from the present-day one. It was located in the heart of nowaday Mong Kok. With cultivated lands,...
, Sui Wo Court
Sui Wo Court
Sui Wo Court is one of the first estates under Home Ownership Scheme. It is located in Fo Tan, Sha Tin District, Hong Kong.Built in 1980, it is located on a mountain above Wo Che and east of central Fo Tan, northwest of Sha Tin. The court was designed by Palmer and Turner and received a Silver...
(穗禾苑) in Sha Tin
Sha Tin
Sha Tin, also spelled Shatin, is an area around the Shing Mun River in the New Territories of Hong Kong. Administratively, it is part of the Sha Tin District.-Geography:...
and Yue Fai Court (漁暉苑) in Aberdeen.
Average unit selling prices were HK$120,000. However, citing the fact that flats from the Mei Sun Lau development were selling at prices above the prevailing market prices, press favourable to the Chinese authorities criticised the Government of profiteering from this scheme.
In 1987, forecasting that the demand for home-ownership was on the rise, the Government launched a plan to redevelop the older housing estates, and introduced a greater choice of apartments available for purchase by public housing tenants. Initially, 2,000 scheme members would be given a HK$50,000 interest-free loan with which to make the downpayment on their new private-sector homes.
In December 1991, there was a huge rush to buy 6,452 Housing Authority properties in 17 projects. Flats were to be sold at a discount of 40%, the most attractive for several years. The cost was approximately one-third compared with properties in similar private developments.
Short piling
In 2000, the scheme was caught up in a short-pilingDeep foundation
A deep foundation is a type of foundation distinguished from shallow foundations by the depth they are embedded into the ground. There are many reasons a geotechnical engineer would recommend a deep foundation over a shallow foundation, but some of the common reasons are very large design loads, a...
scandal which resulted in the resignation of Housing Authority Chief Rosanna Wong, and a censure for Housing Director Tony Miller. The construction of 2 blocks of Yu Chui Court in Sha Tin was delayed as it had to be demolished and rebuilt at an estimated cost of HK$250 million. The Wai Kee Group was implicated, and some of its companies were delisted from Government projects following the publication of the Strickland Report.
Resale
Public housing units in Home Ownership Scheme housing estates are subject to sale restrictions of the Housing Ordinance. The Home Ownership Scheme Secondary Market is only open to eligible low-income residents and low-income tenants of rental public housing. Three years after being assigned HOS public housing units, owners are allowed to obtain a certificate from the Housing Authority to place their homes in the HOS Secondary Market, without paying the subsidised land premiums (normally 35–50 per cent discount to the prevailing market). Owners who have sold their HOS public housing units will no longer be eligible for any form of public housing. In general, they are allowed after five years to apply to place their homes in the HOS Secondary Market without the paying subsidised land premium, or to apply for removal of sale restrictions by first paying the full subsidies and the land premiums to the Housing Authoritiy, as decided by the Director of Housing.In 2002, developers complained of weakness in property prices, claiming the housing marketplace was largely distorted by excessive unfair competition from schemes such as the HOS. It was pointed out that a public rental tenant moving into a second-hand Home Ownership Scheme flat would receive three lots of subsidies. Government halted the PSPS, developments which were in progress at the time were either transformed into public housing, or sold off to private developers. Construction of new HOS estates was suspended in November 2002, and it was also announced that the TPS would end.
Hung Hom Peninsula controversy
One PSPS project, the 2,470 flat Hung Hom Peninsula built by New World Development and Sun Hung Kai Properties, was sold for a below-market land premium of HK$864 million to New World DevelopmentNew World Development
New World Development Company Limited , based in Hong Kong, is active in property, infrastructure, services and telecommunications. It was established in 1970 with Dr Ho Sin Hang as Chairman and Chow Chi Yuen as Director and General Manager...
, who subsequently sold off half share to Sun Hung Kai
Sun Hung Kai
Sun Hung Kai Properties Ltd. is a listed corporation based in Hong Kong. The company is controlled by the family trust set up by Kwok Tak Seng, who founded the company.-History:...
. In 2004, the consortium announced the demolition of these buildings to make way for luxury apartments, to be faced with huge popular outcry about the needless destruction of "perfectly good buildings" to satisfy "corporate greed". In an unprecedented about-turn, the developers withdrew the plan on 10 December 2004.
External links
- Information by Hong Kong Housing Authority
- "History of Home Ownership Scheme", City University of Hong KongCity University of Hong KongCity University of Hong Kong is a comprehensive research university in Hong Kong. It was founded in 1984 as City Polytechnic of Hong Kong and became a fully accredited university in 1994. It has achieved fast growth in recent years and received international recognition for its academic achievements...
website - Hong Kong Place,, part I, part II