In the most recent policy address(2010-2011) given by the head of HKSAR, there is a highlight about policy to promote affordable housing and to subsidy sandwich class to purchase homes regarding housing. The program underlies SAR's belief stated in the head's policy address, "The Government recognises the importance of a stable home, and is fully aware of our people's wishes to improve their quality of life and move up the social ladder through home ownership.” It has aroused major discussion about the competency of the program.
It sounds brief and clear, "rent-and-buy." However,we need to pay attention to the fact that it is not a program that subsidizes rent unless you have a home purchase plan during the five-year period participating in the program. In another word, you have to be definite to change your identity as a tenant in the city to become qualified for this subsidy.
Meanwhile, I wonder if it can be considered more as a subsidy to investors rather than renters regarding the fact that tenants who plan to purchase housing stock in private market would also be qualified. The program seems to be more like a linkage that aims to facilitate capital moving between governmental subsidy and private market. The only benefit a renter who would not buy a house after five year is probably the zero-gain rent during the period. Moreover, it is quite clear that the program is not designed for the most deprived renters in the city.
It sounds brief and clear, "rent-and-buy." However,we need to pay attention to the fact that it is not a program that subsidizes rent unless you have a home purchase plan during the five-year period participating in the program. In another word, you have to be definite to change your identity as a tenant in the city to become qualified for this subsidy.
Meanwhile, I wonder if it can be considered more as a subsidy to investors rather than renters regarding the fact that tenants who plan to purchase housing stock in private market would also be qualified. The program seems to be more like a linkage that aims to facilitate capital moving between governmental subsidy and private market. The only benefit a renter who would not buy a house after five year is probably the zero-gain rent during the period. Moreover, it is quite clear that the program is not designed for the most deprived renters in the city.
* the policy is published here http://gia.info.gov.hk/general/201010/13/P201010130272_0272_70332.pdf