Home Ownership Scheme

It was instituted in the late 1970s as part of the government policy for public housing with two aims – to encourage better-off tenants of rental flats to vacate those flats for re-allocation to families in greater housing need; and also to provide an opportunity for home ownership to families unable to afford to buy in the private sector.

Under the scheme, the government sells flats to eligible public housing tenants and to lower-income residents at prices below the market level, with discounts usually between 30 and 40 per cent.

[2] The Hong Kong government announced the resumption of the HOS programme in 2011 in response to public discontent over the territory's high housing prices.

[6] On 3 September 2001, Dr. Michael Suen Ming Yeung, the Chief Secretary, announced that the Home Ownership Scheme would be stopped.

Donald Tsang, the Chief Secretary for Administration announced that the sales of HOS flats would not exceed 9,000 a year up to 2005–06, subject to the continuing need to avoid competition with the private sector residential market.

[9] 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.

In general, they are allowed after five years to apply to place their homes in the HOS Secondary Market without 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 Authority, 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.