​Following is a question by the Hon Albert Chuang and a reply by the Secretary for Housing, Ms Winnie Ho, in the Legislative Council today (July 8):

Question:

     An organisation has published a survey report indicating that nearly 50 per cent of the young respondents do not aspire to home ownership due to "excessively high property prices beyond their means", and that for those young people who aspire to home ownership, the downpayment expenditure constitutes the core difficulty they face. In this connection, will the Government inform this Council:

(1) as the survey report indicates that, among the various financial support measures, respondents expressed stronger support for "the provision of an interest-free downpayment loan scheme for young first-time home buyers", whether the Government will study the launch of a pilot scheme on interest-free loans for first-time home purchase targeting young people, so as to assist them in acquiring their first home; if so, of the details; if not, the reasons for that;

(2) given that, at present, the minimum downpayment required of Green Form purchasers of subsidised sale flats (SSFs) launched by the Hong Kong Housing Authority in the primary market is 5 per cent of the flat price, while that required of White Form purchasers is 10 per cent, and that some views have pointed out that lowering the minimum downpayment for White Form applicants to 5 per cent to bring it on a par with that for Green Form purchasers could alleviate the cost burden on young first-time home buyers, whether the Government will consider such a proposal; if so, of the details; if not, the reasons for that; and

(3) as the Government indicated in its reply to a question raised by a Member of this Council on July 30 last year that it would explore other measures to further assist young people in purchasing SSFs, of the progress made in this regard?

Reply:

President,

     The current-term Government has been committed to enriching the housing ladder, providing a solid foundation for citizens (especially young people) to live and work in contentment. We also introduce facilitation measures in various areas, including housing supply and financial arrangements. In response to the question from the Hon Chuang, my reply is as follows:

     On housing supply, under the Government's unremitting efforts, the situation of back-loaded public housing supply, including public rental housing and subsidised sale flats (SSFs), has now been reversed. Coupled with Light Public Housing, the total public housing supply over the next five years is projected to be about 196 000 units, representing an increase of over 80 per cent compared to the five-year period at the start of the current-term Government. In terms of SSFs, as at end March 2026, the Hong Kong Housing Authority (HA) and the Hong Kong Housing Society (HKHS) would provide about 60 000 SSFs in the coming five years. Compared to the five-year period at the start of the current-term Government, the supply of Home Ownership Scheme (HOS) flats is projected to increase by about 55 per cent over the original estimates.

     Many young people are working hard and saving diligently to achieve upward mobility step by step. Such efforts are a highly valuable driving force in the society and should be recognised. SSFs are an affordable option for them, and around 50 per cent of the buyers of HOS flats are young people aged below 40. It is anticipated that more than 30 000 young families would benefit from the increase in the supply of SSFs. HOS flats are priced based on the affordability, and are sold at a minimum discount of 30 per cent off the assessed market values. The five new HOS developments under the Sale of HOS Flats 2025 exercise offer nearly 7 000 flats for sale, with the selling prices ranging from about $1.5 million to about $4.8 million. Assuming the selling price of a flat is $2.8 million (with a saleable area of around 390 square feet), a White Form buyer can purchase a flat by making a down payment equivalent to 10 per cent of the property price with a monthly mortgage payment of around $11,300, which should be affordable for the youths. The HA also provides mortgage guarantee to the buyers to facilitate them in obtaining mortgage loans. 

     Furthermore, starting from the Sale of HOS Flats 2024 exercise, the HA has implemented the Families with Newborns Flat Selection Priority Scheme, under which most of the beneficiaries are believed to be young families. To date, over 800 families with newborns have successfully purchased first-hand SSFs. 

     As for secondary market, around 80 per cent of buyers under the White Form Secondary Market Scheme (WSM) were young people. To further assist them in home ownership, the HA has, since the WSM 2024 exercise, designated 1 500 quotas for the youth. Meanwhile, to meet the young people's aspirations of home ownership, the HA has reallocated unused family quotas to one-person applicants since the same WSM exercise, with a view to increasing their opportunities for home ownership.

     Apart from HOS, the Government also, through Starter Homes for Hong Kong Residents (SH) projects, helps persons whose income and assets are above the application threshold of HOS and yet cannot afford private housing achieve their home ownership aspirations. The first two SH projects offered for sale by the Urban Renewal Authority had a total of over 600 units sold, in which around 85 per cent of the purchasers were young people aged 40 or below.

     In addition to the increase in housing supply and enhancements of the sales arrangements, the Government also optimises the financial arrangements to help citizens (including young people) achieve home ownership on all fronts. For example, the Government adjusted the value bands of ad valorem stamp duty in February 2025, raising the maximum value of properties chargeable to $100 stamp duty from $3 million to $4 million, so as to reduce the burden of homebuyers (first-time young homebuyers generally prefer to buy flats falling into this price range). The Hong Kong Monetary Authority also adjusted the measures for property mortgage loans in October 2024, with the maximum loan-to-value (LTV) ratio standardised at 70 per cent regardless of the value of the property, and the debt servicing ratio limit standardised at 50 per cent. Individuals may also obtain higher LTV ratio mortgage loans through the Mortgage Insurance Programme. For first-time homebuyers with regular income purchasing properties priced at $10 million or below, the LTV ratio can be up to 90 per cent.

     The above package of measures has significantly reduced the down payment and related costs for young homebuyers. The current pricing of HOS flats is determined based on the affordability of low and middle-income non-owner occupier households. If the down payment requirement for White Form applicants were to be further lowered, or if an interest-free down payment loan scheme were introduced for first-time young homebuyers, we must be mindful of the risks they may face. In particular, there is a concern that individuals without sufficient affordability (especially young people) might enter the market prematurely, thereby increasing their repayment burden in the future. We believe that such situations should be carefully monitored and handled with prudence.

     Looking ahead, starting from the Sale of HOS Flats 2025 exercise, the HA will allocate an additional ballot number to young families and one-person applicants under the age of 40 with White Form status to increase their chance in the ballot. Meanwhile, the quota under WSM 2025 will increase to 7 000, of which a quota of 2 000 will be designated for youths, representing a further increase of 33 per cent when compared to that of WSM 2024. The HKHS is also planning on similar arrangements.

     We believe that, as long as young people are fully aware of the abundant opportunities ahead, such as the great potential to be brought by the Northern Metropolis, they will plan ahead and move upward along the housing ladder, aiming higher and going further. We will continue to enhance our housing policies, constantly review the needs of society (particularly the young people), and refine relevant arrangements to help young people strive for advancement.

     Thank you, President.

Ends/Wednesday, July 8, 2026
Issued at HKT 15:07

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