LCQ19: Studying the re-launch of the Tenants Purchase Scheme
************************************************************

     Following is a question by the Hon Tam Chun-kwok and a written reply by the Secretary for Housing, Ms Winnie Ho, in the Legislative Council today (March 18):
 
Question:

     It has been reported that the Government has identified sufficient land for construction of public rental housing (PRH) units to meet the housing demand in the coming decade. There are views that it is now an opportune time for re-launching the Tenants Purchase Scheme (TPS), and the Government has also indicated its plans to conduct the related studies this year. In this connection, will the Government inform this Council:

(1) of the percentage of sold flats in the number of flats available for sale in the 39 TPS estates as of December 2025; whether the Government will conduct surveys to understand the intention of PRH tenants not covered by TPS to purchase the flats they are currently living in; if so, of the details; if not, the reasons for that;

(2) of the specific scope of study and timetable for the study of the re-launch of TPS to be conducted by the Government;

(3) whether the Government will explore the possibility of including other housing estates in TPS; if so, of the details (e.g. the types of housing estates to be given priority consideration); if not, the reasons for that;

(4) whether the Government will introduce specific measures to step up management and maintenance efforts in the TPS estates, so as to enhance the appeal of TPS flats for PRH tenants; and

(5) given that the Buy-or-Rent Option (BRO) has been implemented by the Hong Kong Housing Authority before, and Yung Shing Court in Fanling is an estate under BRO, whether the Government will review the re-launch of BRO as well, with a view to enabling residents to purchase housing units through BRO? 
 
Reply:
 
President,
 
     The Tenants Purchase Scheme (TPS) was first introduced by the Hong Kong Housing Authority (HA) in 1998 to allow the sitting tenants of public rental housing (PRH) to purchase their flats at extremely low prices (12 per cent to 21 per cent of the original price) so as to achieve home ownership. Following a comprehensive review of the housing policy by the Government in 2002, the HA then decided not to roll out new TPS estates after the sale of TPS Phase 6B in August 2005. While sitting tenants in the 39 TPS estates can still opt to purchase their flats, the HA also puts up recovered TPS flats for sale in the Home Ownership Scheme (HOS) and Green Form Subsidised Home Ownership Scheme (GSH) sale exercises to eligible Green Form (GF) applicants.

     In response to the question raised by the Hon Tam Chun-kwok, our reply is as follows.

(1) to (3) As of end-December 2025, the total number of TPS flats was around 184 440, of which 155 760 (i.e. 84 per cent) had been sold. However, about 30 000 TPS flats (i.e. 16 per cent) remained unsold. As of end-December 2025, the relevant flats were priced with a discount of approximately 78 per cent to 83 per cent off the assessed market value. Please refer to the Annex for details regarding the percentage of units sold in the 39 TPS estates.

     The HA has regularised the sale of recovered TPS flats to GF applicants through HOS or GSH sale exercises since 2023. In each sale exercise, we offer a reasonable number of recovered TPS flats for sale. Since the regularisation, about 300 to 400 recovered TPS flats have been put up for sale in each sale exercise. A new batch of recovered TPS flats will be put up for sale in "GSH 2025" sale exercise, with the number of flats to be announced before flat selection in Q3 2026. 

     According to the HA's Public Housing Recurrent Survey 2025, approximately 54 per cent of tenants in TPS estates indicated that they would not consider purchasing the flat where they currently reside, while another 34 per cent replied they had yet to decide or did not know. Even though the TPS flat they currently reside in is offered for sale at 17 per cent to 22 per cent of the assessed market value, a majority of the tenants (51 per cent) who would not consider purchasing their flat expressed difficulties in affording monthly mortgage repayments or having an unstable income. Furthermore, a certain number of tenants stated that they would not consider purchasing a TPS flat due to their advanced age (39 per cent) or the relatively old building age (20 per cent) (Note).

     The HA recognises that there are different views across society on whether TPS should be reintroduced. Even among those who support relaunching TPS, there are differing views on the arrangements such as the pricing, the maintenance and management responsibilities, the selection of suitable estates, etc. In this regard, the HA will launch a study this year to extensively collect concrete views from PRH tenants and stakeholders from various sectors. The study will cover topics including whether the requisites of relaunching TPS are currently in place, how estates should be selected if TPS is relaunched, flat sale prices, as well as the management and maintenance responsibilities, etc. The study will better gauge PRH tenants' preference on whether to purchase their current flats and also the views of other stakeholders in society. The HA will carefully consider whether to relaunch the TPS, thereby ensuring the proper use of public housing resources.

(4) In terms of management and maintenance, TPS estates are no different from general private properties. In accordance with the Building Management Ordinance (Cap. 344) (BMO), the Government Lease, and the Deed of Mutual Covenant (DMC), the Owners' Corporations (OCs) of TPS estates are responsible for the daily management, maintenance, and financial arrangements of the estates. As the owner of the unsold flats in TPS estates, the HA has been actively participating in the work of the OCs' Management Committees (MCs) and continuously optimising its support for TPS estates in five major areas, with a view to enhancing the attractiveness of the flats to PRH tenants –

(i) Actively exercise title and voting rights: The HA representatives exercise their voting rights as owners at general meetings on major issues including building safety, large-scale maintenance, management fee adjustments, etc. The HA representatives also provide professional advice on works tenders to ensure compliance with legal requirements and uphold the overall interests of owners, thereby enhancing tenants' confidence in estate management;

(ii) Participate in MC affairs and provide professional advice: The HA representatives actively participate in MC meetings to assist OCs in monitoring the use of maintenance funds. Where complaints or enquiries regarding tenants arise (such as water seepage or dripping air-conditioners, etc.), the HA coordinates with management companies and relevant departments for follow-up to enhance the quality of the living environment;

(iii) Share management information and good practices: The HA proactively shares the latest updates on relevant property management legislation and practical experience with OCs and management companies. The HA also encourages OCs to take part in the "Smart Tender" service and the Integrated Building Rehabilitation Assistance Scheme (IBRAS) provided by the Urban Renewal Authority to enhance the transparency and competitiveness of tendering processes, thereby ensuring work quality and further increasing the flats' appeal to tenants;

(iv) Support procurement and works monitoring: The HA reminds OCs to conduct procurement in accordance with the BMO and relevant Codes of Practice. For works under the Mandatory Building Inspection Scheme and the Mandatory Window Inspection Scheme, the HA assists in tender assessment to ensure that the projects comply with statutory requirements and the DMC stipulations, thereby safeguarding the safety and interests of residents; and

(v) Implement management policies for the HA tenants: The HA addresses tenants misdeeds in TPS estates (such as noise nuisance, throwing objects from heights, etc.) through the Marking Scheme for Estate Management Enforcement. By collaborating with OCs and management companies in evidence collection and joint enforcement actions, the HA maintains the estate environment and enhances the overall living experience.

     The HA will continue to work closely with OCs, management companies and relevant departments to promote quality management and timely maintenance of TPS estates. Where necessary, the HA will provide professional advice and technical support to assist OCs in long-term financial planning and building maintenance, with a view to further enhancing the attractiveness of TPS flats to PRH tenants.

(5) The Buy or Rent Option Scheme (BRO) and TPS are two different schemes with different arrangements and target groups. The BRO was launched in 1999 and terminated in 2003. The BRO was introduced at that time to provide prospective PRH tenants with an additional option, allowing them to become homeowners directly without having to first reside in PRH.
 
     In fact, under the prevailing mechanism, PRH applicants who have passed the detailed vetting may choose to apply for a Green Form Certificate (GFC) to purchase various types of subsidised sale flats (SSF) of HA, including HOS, GSH and recovered TPS flats. In recent years, the supply of SSF for sale has increased significantly. In the next five-year period (2026/27 to 2030/31), the supply of HOS flats is expected to reach nearly 59 000, representing a significant increase of nearly 50 per cent compared to the first five-year period when the current-term Government took office (2022/23 to 2026/27). The HA has also introduced various measures to assist PRH tenants and GFC holders in home purchase, including adjusting the ratio of GF and White Form from 40:60 to 50:50 starting from "HOS 2025". It is believed that these measures will help parties concerned achieve their home ownership aspirations.
 
Note: Multiple reasons could be selected.

Ends/Wednesday, March 18, 2026
Issued at HKT 15:13

NNNN