The Democratic Alliance for the Betterment and Progress of Hong Kong has proposed the relaunch of the Tenants Purchase Scheme, which would allow public rental housing tenants to buy their flats.

This initiative has the potential to generate HK$13.6 billion in annual revenue for the government.

A survey conducted by the party revealed that over 90 percent of public housing tenants support the relaunch of the scheme, and more than 85 percent of them expressed an intention to purchase their current flats if given the opportunity.

DAB lawmaker Chan Hok-fung expressed his satisfaction with the tenants' purchasing intention, saying that "it's a good starting point."

He also said there are about 200,000 public rental flats between 20 and 30 years old, and if 20,000 of these flats were sold annually, it could generate significant revenue for the government.

"With each unit estimated to be sold for HK$800,000 to HK$1 million, the scheme could bring in over HK$10 billion in yearly revenue, sustaining the income for a decade," Chan said.

The survey also shed light on the motivations behind tenants' desire to purchase their flats. The majority of respondents cited the desire for a stable residence and the wish to provide a home for their children as their primary reasons.

However, some tenants expressed concerns about their ability to afford the mortgage, which may deter them from participating in the purchasing scheme.

To address these concerns, Chan said: "The government should relaunch the Tenants Purchase Scheme, as public rental flat residents have shown a clear intention to purchase their flats." He added that the scheme would not only meet the long-term demands of public housing tenants but also unlock the potential land value, providing stable cash flow for the government and the Housing Authority.

The party proposed that the selling price of the public flats should be determined based on tenants' affordability.

They recommended that the total housing expenditure, including monthly contributions and other expenses, should be limited to 25 percent of the tenants' average household income, with an average selling price of no more than HK$1 million per unit.

"The sold units could be managed by an owners' corporation, while the Housing Authority could continue to oversee public areas," Chan said.

Homeowners would be required to pay management fees to the authority, a system that is currently satisfactory to public housing tenants.

"To strike a balance between the interests of public flat tenants and those on the waiting list, the party suggested that the government consider suspending the Green Form Subsidized Home Ownership Scheme," the party said.

It added: "This will allow flats under the Green Form subsidized housing scheme to be rented to citizens, thereby avoiding resource overlap and increasing the supply of public rental flats."

DAB calls for relaunch of Tenants Purchase Scheme with $13.6b target