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justification to consider the SHS as an effective panacea for Hong Kong’s
social, political, and economic ills.

It would be sensible to appreciate that by reforming the public
housing programme along the lines prescribed by the SHS, a city of
homeowners will produce positive externalities for our society. Furthermore,
OHKF believes that in the long run, the privatisation of public housing
covering not only future supply of public housing, but also existing public
housing units should be explored. This would maximise the benefits to our
society.

(i) Rent-and-buy units are available for new public housing units with
the option of “rent first and buy later”. The government will act as the
guarantor of the property so that the buyer could obtain a 90% to 95%
mortgage to help low-income families to buy units sold under the SHS.

(ii) The unpaid premium will be considered effectively a “loan” from the
government to the purchaser and the amount concerned will be fixed
at the date of occupation. While the exact amount could be subject
to a few possible mechanisms of determination depending on public
discussion, unpaid premium under the SHS will no longer be linked to
the fluctuating market value, rendering the settlement of the amount
easier.

In brief the mechanism of the SHS for new public housing tenants
is as follow: 2
Having provided an overview of the public housing setting in Hong
Kong, the following four chapters will focus on the consequences arising
from the public housing programme. Each of the chapters will analyse an
overarching theme: Inequity, Divorce, Poverty, and Injustice.

2 For a more detailed description of the SHS, please refer to Part One of our first Report on Land and Housing, “Maximising
Land Use to Boost Development; Optimising Housing Resources to Benefit All”.
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