(Policy Address 2025) Housing reforms target youth, elderly, and upgraded flat supply

In a significant shift aimed at rebalancing the housing market, Chief Executive John Lee announced a series of reforms to subsidized sale flats in his fourth Policy Address, with changes to sales quotas, unit sizes, and resale restrictions designed to assist younger applicants, public rental tenants, and elderly homeowners.

A key change is the adjustment of the Green Form-to-White Form ratio for Home Ownership Scheme (HOS) flats.

The quota allocation will be shifted from 40:60 to 50:50, a move intended to assist more public rental housing tenants in becoming homeowners.

Furthermore, the quota for the White Form Secondary Market Scheme (WSM) will be increased by 1,000 to a total of 7,000 starting from the next exercise. In a targeted effort to support younger generations, half of these additional 1,000 spots will be allocated specifically to young families and one-person applicants below the age of 40.

Responding to market demands for more spacious housing, the government will increase the ratio of larger units in future HOS and Green Form Subsidised Home Ownership Scheme (GSH) projects.

In a major incentive to encourage upward mobility, the alienation restriction period for new flats sold in the next HOS and GSH exercises will be relaxed from 15 years to 10 years, allowing owners to sell their properties on the open market sooner.

A notable new pilot scheme will allow owners who have held their subsidized sale flat for 10 years or more to rent out their unremedied unit to eligible White Form applicants after paying a letting fee. The Hong Kong Housing Authority and the Hong Kong Housing Society will introduce this initiative with a quota of 3,000 units.

For elderly residents, a "Flat-for-Flat Scheme for Elderly Owners" will be launched. This program permits owners aged 60 or above who have owned their flat for a decade or more to sell their original unit in the secondary market without paying a premium and use the proceeds to purchase a smaller or more remote flat.

This mechanism is designed to provide seniors with extra cash for living expenses while simultaneously freeing up larger, urban flats for families in need.

On public housing estate redevelopment, the HKHA will announce plans for Ma Tau Wai Estate and Sai Wan Estate within the year. A study will also be conducted on the potential redevelopment of Model Housing Estate, signaling a continued commitment to rejuvenating older housing stock.