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Written by: Lu Jinyang and Li Xingran
2020-12-21 10:00
Last update date: 2020-12-21 10:00
【Tenants Purchase Scheme/TPS/Public Housing for Sale】"Tenants Purchase Scheme (TPS)" allows public housing tenants to buy back rental units to realize the dream of landlords. Over the years, many tenants have offered discounted prices Buying public housing, and then selling the unit several times the price of the property, the profit can be millions at any time.
Public housing rental units are available in the secondary market without land premiums or in the free market after land premiums have been paid. In recent years, in response to the government’s tightening of public housing policies for wealthy tenants and the introduction of the "White House II", the rental units have become more affordable It has become more and more popular. The "01 Research Institute" has integrated and analyzed the transaction data related to the rental purchase plan units over the years, and found that the transaction price of the rental purchase units in the secondary market has an upward trend, and the increase is even greater than that of private buildings. The transaction price and volume of the second market for land premium flats have risen, and the first-hand sales of rental units have also rebounded significantly in recent years, which proves that they are popular and popular!
Fung Tak Estate in Wong Tai Sin District is the "king of the house" in Kowloon in the public housing tenancy plan. The price per square foot is close to that of neighboring private buildings.
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Second market transaction price of TPS units
"Hong Kong 01" compiled the second market transaction records of the Housing Authority's home ownership flats, based on the average price per square foot of the annual transaction prices of rental units from 2001 to August 2020, and then corresponding to the Centaline Index, which represents the price of private housing in the same period.
The following chart data uses 2001 as the base, and then indexed the above data, and then compares with the base year by year to calculate the cumulative change year by year.
The second market transaction price of rental housing units and the leading index of the Central Plains City Division (2001-2020) ▼ ▼ ▼
(Click the button to view the partition comparison)
The above chart data shows that before 2011, the price changes of Hong Kong’s overall rental units in the second market of HOS housing (hereinafter referred to as rental housing prices) were similar to the changes in private housing prices, with a cumulative increase of about 120%, but afterwards, property prices The gap in growth has widened.
As of August this year, the gap has more than doubled. The cumulative increase in rental property prices and private property prices was approximately 5.23 times and 3.14 times, respectively. Rental property prices have won.
If we compare property prices by district, we can see that the price increase of rented units in New Territories East has significantly lagging behind the other 4 districts. As of August this year, it has recorded an increase of nearly 8 times, while the increase in private properties is about 3.2 times, and some rented units In the second market of HOS housing, the prices of private properties are getting more and more discounted. I believe the main reason is that buyers can get high mortgages, and the first installment is relatively low.
Second market transaction volume of TPS units
There are transfer restrictions for units sold through the TPS to reduce the owners’ motivation to change hands. The restrictions were indeed effective in the initial stage. However, in recent years, as the government has tightened the public housing policy for wealthy tenants and the "White House 2" plan, rental units In the second market of HOS flats, the transaction volume has obviously increased, and the original public housing tenants who are eligible to purchase first-hand rental flats can easily make more than one million yuan when they sell the flats.
Second market transaction volume of HOS flats under the TPS (2000-2019) ▼ ▼ ▼
First-hand sales volume of TPS units
At present, 39 public housing estates in Hong Kong are included in the tenancy scheme, providing a total of 180,000 units, of which more than 20% are unsold. Public housing tenants in the relevant housing estates can still buy them at a discount.
The high sales volume of rental units in the initial launch period is believed to be mainly due to the continuous participation of housing estates in the program during the period, pushing up the first-hand sales of rental units.
Relevant plans ceased in 2005, leaving only tail units at any time. The data immediately reflected that the first-hand sales volume of rental units fell, and the sales volume fell to the bottom during the financial tsunami in 2008.
In recent years, with the price and market for public rental housing, the number of units subscribed by tenants has been on the rise.
First-hand sales volume of TPS units (based on annual average every 5 years) ▼ ▼ ▼
Discount categories for buyers of TPS units
Eligible tenants who purchase units of the TPS can enjoy discounts. Tenants who stay in the first year can enjoy a full discount (35%), and the following year can enjoy a half discount (17.5%). There will be no discount afterwards. The following are recent years Distribution map of discount purchases.
(Note: The Housing Authority encourages current tenants of the Tenancy Purchase Scheme to purchase their current flats, starting from September 1, 2020, to tenants who no longer enjoy any discounts (that is, tenants whose leases have reached the third year or more) ) Provide a 17.5% discount for 1 year.)
Percentage of rent-and-purchase plan units purchased at a discounted price▼ ▼ ▼
Tenant Purchase Scheme Estate Distribution Map▼▼▼
13 simple numbers to understand the general situation of the tenancy plan!
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Tenancy Plan | 41,000 units will be sold on a map, 13 sets of numbers to clear 39 rental housing estates
01 Hot talk about public housing
