Affirmative Perspective: Even Affordable Private Apartments in Hong Kong Don't Alleviate the Demand for Subsidized Housing
Affordable Housing in Hong Kong: The White Form Secondary Market Scheme and Home Prices
Many Hong Kong households struggle with meager earnings, barely scraping together enough for a home costing no more than HK$3 million. For these underprivileged families, subsidized housing is the primary route to homeownership. The public housing mission to cater to low-to-middle-income families is as relevant today as ever.
Subsidized housing plays a crucial role in facilitating the turnover of public rental housing. By offering a stepping stone for renting households who find their financial situations improving, these rental flats become available for those in dire need.
What's the Status of the WSM?
In a recent boost, the quota for the White Form Secondary Market Scheme (WSM) escalated from 4,500 to 6,000 units. An additional 1,500 units were earmarked specifically for young applicants below 40 years old via the Youth Scheme. The increased quota saw about 34,000 applicants, creating an oversupply by a substantial margin. Over 80% of these applicants were youths seeking affordable housing.
Ballots for determining applicants' rankings took place in April 2025, with approval letters scheduled for the third or fourth quarter of 2025. Successful applicants will then be granted eligibility certificates to purchase flats within a year's timeframe.
The WSM and Private Home Prices
The WSM offers a viable alternative to private housing for eligible families, enhancing the broader housing market. In recent years, private home prices have plummeted by almost 30%, but the number of affordable private flats (HK$1-3 million) remains scarce—with only 521 first-hand transactions recorded last year. In stark contrast, over 106,000 applications for subsidized housing were registered, underscoring the ongoing desire for such schemes.
Although private housing prices have decreased, the demand for subsidized housing remains robust, particularly among low-to-middle-income families and young individuals. Cheaper private flats often do not meet their needs or eligibility criteria.
In summary, the WSM continues to be a vital policy tool for augmenting affordable housing accessibility for low-to-middle-income families, particularly the younger generation. TheW SM's recent expansion and continued oversubscription highlight its enduring relevance amidst fluctuating private market prices. Despite shrinking private home prices, the paucity of affordable private flats ensures that the WSM remains essential for many families in Hong Kong.
- The White Form Secondary Market Scheme (WSM) serves as an important investment opportunity for individuals, providing an alternative to the expensive private housing market, particularly in the realm of personal finance and real estate.
- In the broader context of society and finance, the increasing demand for subsidized housing, such as the WSM, highlights the need for affordable housing options, especially for low-to-middle-income families and young individuals, in the Hong Kong housing market.
- The expansion of the WSM quota, from 4,500 to 6,000 units, and the creation of the Youth Scheme, offering 1,500 units specifically for applicants below 40 years old, demonstrate the government's commitment to improving the business sector by catering to the housing needs of a significant portion of the society.
