Home Ownership Scheme: Difference between revisions
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| accessdate = 29 January 2007 }}</ref> 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. |
| accessdate = 29 January 2007 }}</ref> 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. |
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==Resale== |
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==Market distortion== |
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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. |
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After acquiring housing units at a discount to the prevailing market, owners of HOS and TPS units are allowed to trade them in the secondary market after three years without paying subsidised land premium (normally 35-50 per cent discount to market). They have complete freedom to sell on the open market after five years.<ref>Paris Lord, [http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=37925&sid=&con_type=1&d_str=20021105&sear_year=2002 In search of a homes revival], [[The Standard]], ''5 November 2002''</ref> |
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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. |
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.<ref name=shackles>Stephen Brown, [http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=11458&sid=&con_type=1&d_str=20021114&sear_year=2002 Shackles off ... it's time for real reform], [[The Standard]], 14 November 2002</ref> Government halted the PSPS, developments which were in progress at the time were either transformed into public housing, or sold off to private developers.<ref>{{cite web |
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| last = Lord | first = Paris | title = In search of a homes revival |
| last = Lord | first = Paris | title = In search of a homes revival |
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| date = 5 November 2002 | publisher = The Standard |
| date = 5 November 2002 | publisher = The Standard |
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| url=http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=37925&sid=&con_type=1&d_str=20021105&sear_year=2002 |
| url=http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=37925&sid=&con_type=1&d_str=20021105&sear_year=2002 |
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| accessdate = 29 January 2007 }}</ref> Construction of new HOS estates was suspended in November 2002, and it was also announced that the TPS would end.<ref name=shackles/> |
| accessdate = 29 January 2007 }}</ref> Construction of new HOS estates was suspended in November 2002, and it was also announced that the TPS would end.<ref name=shackles/> |
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<ref>Paris Lord, [http://www.thestandard.com.hk/news_detail.asp?pp_cat=&art_id=37925&sid=&con_type=1&d_str=20021105&sear_year=2002 In search of a homes revival], [[The Standard]], ''5 November 2002''</ref> |
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==Hung Hom Peninsula controversy== |
==Hung Hom Peninsula controversy== |
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Revision as of 21:38, 1 January 2010
The Home Ownership Scheme (HOS; Chinese: 居者有其屋計劃) is a subsidized-sale public housing programme managed by the Hong Kong Housing Authority in Hong Kong. It was instituted in the 1970s as part of the government policy for public housing in Hong Kong, 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,[1] 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.
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 Chung, 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.[2]
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.[3]
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.[4]
Short piling
In 2000, the scheme was caught up in a short-piling scandal which resulted in the resignation of Housing Authority Chief Rosanna Wong, and a censure for Housing Director Tony Miller.[5] 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.[6] Government halted the PSPS, developments which were in progress at the time were either transformed into public housing, or sold off to private developers.[7] Construction of new HOS estates was suspended in November 2002, and it was also announced that the TPS would end.[6] [8]
Hung Hom Peninsula controversy
One PSPS project, the 2,470 flat Hung Hom Peninsula built by New World Development and Sun Hung Kai Properties,[9] was sold for a below-market land premium of HK$864 million to New World Development, 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.[10]
See also
References
- ^ Discount of 37 pc for flat buyers, South China Morning Post, 28 March 1992
- ^ "Govt Will Gain Most From Homes Scheme" (PDF). The Gist. 8 March 1977. Retrieved 29 January 2007.
- ^ $20b plan to solve housing problem, To Chi-hak & Esme Lau, Hong Kong Standard, 9 April 1987
- ^ Big rush for new release of HOS flats, Ng Kang-Chung, South China Morning Post, 18 December 1991
- ^ Kwok, Lilian (4 July 2000). "Firm to be sued for piling faults". The Standard. Retrieved 29 January 2007.
- ^ a b Stephen Brown, Shackles off ... it's time for real reform, The Standard, 14 November 2002
- ^ Lord, Paris (5 November 2002). "In search of a homes revival". The Standard. Retrieved 29 January 2007.
- ^ Paris Lord, In search of a homes revival, The Standard, 5 November 2002
- ^ Colum Murphy and Sylvia Hui (3 December 2004). "Legislation to block flats demolition ruled out". The Standard. Retrieved 10 August 2008.
- ^ Ng, Michael & Teddy (11 December 2004). "Demolition of Hung Hom flats scrapped". The Standard. Retrieved 10 August 2008.