Think Tank Urges HK$550m Fund To Aid Homebuyers

A think tank is calling up on the government to set up a HK$550 million fund to aid low-income families to buy their own house.

Hong Kong Vision said the government should give a HK$200,000 grant to selected families – including both public housing tenants and the so-called white-form buyers – to purchase HOS flats or second-hand private flats.

Dr Law Cheung-kwok, a senior research fellow at the think tank, said the aid should be made available to 2,800 families every year, about five percent of the average annual number of home transactions in Hong Kong.

He said the HK$550 million they are calling for is about 1.5 percent of the total annual expenditure of the Housing Authority.

"Given the very huge total government reserves, I don't see any financial difficulties for the Hong Kong government to provide such schemes to assist our citizens purchase their homes," he said.

Law said the policy won't drive up property prices further as the quota would only make up a minimal portion of the housing market.

The think tank also suggested extending insurance for mortgages to 95 percent from the current 90 percent for flats costing under HK$4 million, and allowing each family to use up to HK$200,000 of their MPF savings on a down payment for their first home.