Hong Kong Property for Sale Under the Subsidised Housing Schemes

Hong Kong property homeowners who meet specific restrictions on their income can utilize the Hong Kong subsidised housing scheme. The scheme is also accessible by general buyers too.


Who is entitled to purchase a home under this scheme?


Used as well as brand new flats are accessible to public housing tenants. They can purchase this Hong Kong property under the scheme. If they surrender the public houses that they are already renting, the tenants can purchase the new houses without having to pay any premium to the Housing Authority.


Families in Hong Kong that earn a gross income of HK$60,000 (US$7,600) every month are eligible to participate in the Hong Kong Ownership Scheme (HOS). The families that have assets of HK$1.96 million or less are also eligible for the scheme. Furthermore, all one-person households that earn half of the stated monthly amount of rent are also eligible to join the scheme.


Embed from Getty Images


The individuals or families who qualify can take up White Form Status. This allows them to purchase the used or brand new Hong Kong property without being charged any premium.


The tenants of public housing who are less well-off can try to join the Green Form Subsidized Home Ownership Scheme. Launched in 2016, this scheme sells flats that are cheaper than the ones under the HOS.


If you fail to qualify for these schemes due to excessive income, you can purchase HOS flats that are previously lived-in. They are available on the open market. While doing this, you have to pay the government a premium. A market rate discount is normally levied during the sale of HOS flats. This discount is determined by an affordability test that considers your median household income.


Requirements for resale


Within the Hong Kong Ownership Scheme (HOS), the fundamental owners can sell their flats once three to five years have elapsed after initial purchase. The buyers of these houses have to be individuals that have been nominated by the Housing Authority. These sales can be performed on the open market. This is as long as the government premium has been paid.


Here’s how the Sandwich Class Housing Scheme works


No new flats are currently available because this housing scheme was scrapped in 1998. However, in 2010, some leftover stock from The Pinnacle in Tseung Kwan O was launched. This was to be disbursed according to the Sandwich Class Housing Scheme. Family applicants for these houses had to fulfil an income limit that ranged between HK$23,000 and HK$39,000 per month. Furthermore, the asset limit value on the Hong Kong property was HK$1.2 million.


Families that earn income that is too high to qualify for subsidized housing can buy used units. They are available in the scheme. The only condition is that the government premium is fulfilled.


A comparison of the prices of subsidized homes and private flats


Within the HOS, houses are 52% cheaper in comparison with the average market price. This depends directly on the government policy for that particular year. Last year, there were 4,431 flats available under the scheme. However, there were 27,200 applications made. This amounted to a demand of 61 buyers for every flat.

Hong Kong Property

In the Sandwich Class Housing Scheme, houses tend to be a little pricier in comparison with the HOS scheme. They are regarded as being high quality homes. This is due to the cooperation between private developers and the Hong Kong Housing Society.