Prologue
- The SAR Government (hereafter the Government) has launched a public consultation to revisit the policy on subsidizing home ownership (hereafter “the consultation”), which is considered a retrogression in respective policy area. Despite Government’s reiteration of having no predisposition over this issue, members of the public are required to provide compelling reasons and tell the Government why it should not continue the suspension of the Home Ownership Scheme (hereafter “HOS”) and variety of home finance schemes. In the light of this, Government’s current position over subsidizing home ownership could be summarized in two points. First and foremost, there is no urge for the provision of HOS flats except rentals in view of the abundant “starter flat” supply in the market. Secondly, revitalization of the HOS second hand market is considered an extra source of “starter flats”, which might help alleviate the tension arising from a stringent private property supply.
- The Professional Commons disagrees with Government’s reluctance on resuming the HOS scheme. This research paper attempts to respond to these two major focuses raised in the consultation by suggesting that, first of all, the supply of small- and medium-sized private “starter flats” will be proved inadequate, different from what the Government has always claimed. It will then highlight the internal conflicts concerning the Government’s proposed measure of revitalizing HOS second hand market. And finally, the paper will, come up with policy recommendations on subsidized housing, in particular the conception and arguments for HOS resumption.
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