To address the ongoing housing crisis, sources suggested that the upcoming Policy Address will likely relaunch the Tenants Purchase Scheme (TPS) to allow existing public housing tenants to purchase their rented units at discounted prices.
Initially launched in 1998 during a period favoring free-market principles, the TPS aimed to enable tenants in public housing estates to purchase homes affordably. However, the scheme was terminated in 2002 following a review of the government's overall housing policy.
Advocating for privatizing public housing
Economist Richard Wong Yue-Chim from the University of Hong Kong has long advocated for the privatization of public housing, highlighting that there is a potential asset worth trillions tied up in public housing, which remains untapped because tenants only hold usage rights.
Wong believes that relaunching the TPS could alleviate the government's financial burden while providing upward mobility for lower-income families.
DAB calls for relaunch of TPS
The Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) has also joined the call for the relaunch of TPS, citing a survey showing that nearly 80 percent of residents expressed desires to purchase their current rental units.
Separately, the government has no plans to introduce Property Purchase Connect, which would facilitate mainland buyers acquiring Hong Kong properties, citing concerns that such a measure could exacerbate housing price inflation, according to sources.
Insiders suggest that the government aims to maintain a stable housing market and prioritize local residents' housing needs.
While property prices have decreased, officials are reportedly cautious about introducing foreign investment which might further challenge affordability for local buyers.
It is also understood that officials will not consider raising the stamp duty exemption threshold from the current HK$1 million to HK$6 million.
