HOUSING
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Security of Tenure
Tenancy-related matters, including security of tenure, are governed by the Landlord and Tenant (Consolidation) Ordinance. All domestic tenancies currently enjoy security of tenure so long as tenants are prepared to pay the prevailing market rent on expiry of their tenancy agreements.
Home Ownership
Promotion of Home Ownership
Owning one's home is an aspiration shared by many in the community. Promotion of home ownership helps to foster social stability and a sense of belonging. The Government provides a variety of subsidised home ownership schemes and loan schemes through the HKHA and the HKHS to enable eligible families to buy their own homes. The target is to achieve an overall home ownership rate of 70 per cent by 2007, compared with 55 per cent in 2001.
Home Ownership Scheme, Private Sector Participation Scheme and
Flats for Sale Scheme
The HOS and PSPS were introduced by the HKHA in 1978 and 1979 respectively, to assist low and middle income households to purchase homes at discounted prices. About 310 738 flats have been sold so far to eligible households. In 2001, 7 906 flats and 4 740 flats were sold under the HOS and PSPS respectively, and the sale exercises were three times over-subscribed on average.
In 1987, the HKHS implemented the Flats for Sale Scheme (FFSS) to complement the HOS and PSPS. So far, 9 200 flats have been built.
Applicants under the HOS, PSPS and FFSS fall into two categories: Green Form and White Form. White Form applicants (mainly living in private sector housing) are subject to a domestic property restriction, net asset limits and income limits. These restrictions do not apply to Green Form applicants who are principally public rental housing tenants, residents of Cottage Areas and interim housing managed by the HKHA, households displaced by the clearance of squatter areas for development, and victims of natural disasters.
Affordability is the primary consideration in determining the price of HOS, PSPS and FFSS flats. In the case of subsidised home ownership flats built by the HKHA, sale prices also reflect the Government's granting of land at reduced or nominal premium. Prices in each sale exercise reflect a discount from the assessed market value of the flats.
The Secondary Market Scheme was established by the HKHA and the HKHS in 1997 for the resale of subsidised home ownership flats, starting from the third year after first assignment, to sitting public rental housing tenants and Green Form Certificate holders. Flat prices are freely negotiated between the parties involved, subject to the transfer of premium liability to new purchasers. Since then, 21 221 applications for sale and 17 430 applications for purchase have been received; 12 274 transactions have been completed and 10 080 public rental housing flats have been recovered.
HOS, PSPS and FFSS flat owners may sell their flats in the open market starting from the sixth year after first assignment, subject to payment of a premium calculated