John Lee says rent-to-buy plan needs more study
HK01 · 2 SOURCESabout 3 hours ago5 MIN
Summary
Chief Executive John Lee Ka-chiu (李家超) said on September 16 that the Policy Address did not set out a relaunch of the Tenants Purchase Scheme because the government still sees unresolved problems in pricing, estate management and public acceptance. He said about 15% of flats under the scheme remain unsold, involving nearly 30,000 units, and officials want to understand the reasons before deciding whether to revisit the policy.
Key Points
- Speaking at a press conference on September 16, Lee said the Tenants Purchase Scheme was omitted from the Policy Address because it still raises three core concerns
- Lee said roughly 15% of flats under the scheme remain unsold, or about 28,000 to nearly 30,000 units, which he said suggests the scheme was not widely welcomed.
- He said management problems in estates and disputes over the pricing mechanism remain unresolved, making the scheme harder to justify than other subsidised home-ownership programmes.
- Under the existing pricing formula, flats bought in the first year were sold at a little over 10% of market value, and around 20% in the second year
- Lee said Green Form Subsidised Home Ownership Scheme flats and Home Ownership Scheme flats are priced more clearly at about 60% to 70% of market value, with a more defined financial structure
- He also said buyers of Tenants Purchase Scheme flats do not need to undergo an asset test, a feature that remains controversial and requires further review.
- A government source said officials had already commissioned a study, expected to begin by the end of 2026 through interviews, with results anticipated next year
Why It Matters
For public-housing tenants hoping for a new route to buy their flats cheaply, the government is signalling that no near-term relaunch decision has been made and that Green Form home ownership remains the current priority. The eventual review could shape how Hong Kong balances affordability, fairness and long-term public-housing management in future subsidised housing policy.