Covid-19 pandemic hits value of Hong Kong’s subsidised Home Ownership Scheme flats, study shows
- Prices of Home Ownership Scheme flats, before settlement of government premium, fell nearly 10 per cent from January 2020 to May 2022, according to HKMU’s index
- The Centa-City Leading Index, which tracks secondary home prices in 130 private housing estates, rose 2.76 per cent between January 2020 and May 2022
The Covid-19 pandemic has had a bigger impact on prices of subsidised homes on Hong Kong’s secondary market than it has on privately owned flats, a study showed.
Prices of Home Ownership Scheme (HOS) flats, before settlement of premium with the government, fell nearly 10 per cent from January 2020 to May 2022, according to Hong Kong Metropolitan University’s (HKMU) HOS Price Index, the first gauge to reflect subsidised housing price levels.
The Centa-City Leading Index, a gauge of lived-in home prices compiled by Centaline Property Agency, which tracks 130 private housing estates, rose 2.76 per cent during the same period.
Unlike private housing units, which can be traded freely on the market, the HOS flats are subsidised by the government to help those who cannot afford to buy private homes. These flats can be sold to buyers eligible for the scheme without paying a premium. If sold in the secondary market to buyers not eligible for the scheme, the sellers must pay a premium set by the government.
“The scale of Home Ownership Scheme flats in the secondary market is relatively smaller, which lacks liquidity,” said Arbitor Ma Yiu-chung, assistant professor at HKMU.
He said the gauge aims to make up for the lack of a price index dedicated to subsidised housing in the context of the government’s recent adjustment of the public/private split of housing supply from 60:40 to 70:30.
