Hong Kong’s John Lee tipped to relaunch public housing sale scheme for tenants

Hong Kong’s leader is expected to relaunch a scheme allowing public flat tenants to buy their homes as part of his policy address, but observers have raised concerns about settling property management disputes and called for a review of the subsidised housing regime.

Insiders told the Post on Friday that Chief Executive John Lee Ka-chiu’s coming policy blueprint would include a proposal to restart the Tenants Purchase Scheme, a measure that was active from 1998 to 2006 and allowed tenants at 39 estates to buy the flats they were renting.

“Under the proposal, the Housing Authority will first pick several housing estates and consult the tenants, and later select suitable estates to implement the scheme,” one of the sources said, referring to the city’s major public housing provider.

While the government stopped building housing estates for the scheme in the early 2000s, tenants in the 39 estates still have the option to buy their flats.

The price is set based on a “replacement cost”, which includes construction expenses, the price of the land and the related capital costs.

For example, a 423 sq ft flat in Lei Tung Estate in Ap Lei Chau was sold at HK$463,200 in June.