An exploratory study on home ownership scheme (HK): for Housing Studies students

An exploratory study on the home ownership scheme (HK): for Housing Studies students (information from perplexity.ai)

My question 1: "What is "Home Ownership Scheme (居屋)" in Hong Kong all about with reference to Housing Studies?"

The reply: "The Home Ownership Scheme (HOS) (居屋) is a flagship subsidized housing initiative in Hong Kong, designed to help low- to middle-income households transition from public rental housing (PRH) to homeownership. In the context of housing studies, the HOS is analyzed as a response to Hong Kong’s acute housing affordability crisis and limited land supply—factors that have rendered private homeownership increasingly inaccessible, especially for younger generations and lower-income groups.

Core Features of the HOS

• Eligibility: The HOS targets low- to middle-income families, many of whom are current or prospective public rental housing tenants.

• Subsidized Prices: Flats are sold at prices below market rates, with restrictions on resale and asset ownership to avoid speculation and ensure the subsidy benefits the intended groups.

• Policy Intent: The HOS aims to free up public rental housing for more needy families by transitioning existing tenants into homeownership, which theoretically also enhances social stability, civic belonging, and economic protection.

Broader Policy and Social Impact

• Homeownership as Social Aspiration: In Hong Kong, homeownership is widely viewed as a milestone of upward mobility and financial security. However, rocketing property prices have fueled frustration, reduced access to independent housing—particularly among youth—and contributed to social stratification and political tensions.

• Socioeconomic Benefits: Studies note that homeownership correlates with increased civic participation and socioeconomic stability, and can also influence wealth distribution across generations.

• Limitations and Ongoing Challenges: Despite HOS initiatives, the declining homeownership ratio (dropping to around 50% in recent years) underlines the persistent affordability challenges. The HOS alone has been insufficient to fully meet rising aspirations, and issues such as family financial support and intergenerational wealth disparities have become more salient in recent years.

Scholarly Examination

Housing studies often use the HOS as a case to examine:

• The effectiveness of public subsidies in improving access to homeownership.

• The broader implications for social mobility, intergenerational equity, and civic engagement.

• The limitations in addressing deeper structural problems such as land supply, housing demand, and market speculation.

Key Policy Variants

• Green Form Subsidised Home Ownership Scheme (GSH): An offshoot of the HOS targeting existing PRH tenants with “Green Form” status, offering additional avenues for subsidized homeownership.

• Ongoing Reforms: The government has explored measures to curb speculation, expedite supply, and enhance the scheme’s targeting and effectiveness.

In summary, the Home Ownership Scheme in Hong Kong, as referenced in housing studies, is both a crucial policy intervention for social stability and a focal point for debates on systemic housing challenges, intergenerational fairness, and the changing aspirations of a rapidly evolving society."

My question 2: "What are the theories to study this topic?"

The reply: "The study of the Home Ownership Scheme (HOS) and housing policies in Hong Kong involves several theoretical approaches and frameworks drawn from housing studies, urban economics, public policy, and social justice perspectives. The main theories and concepts commonly applied include:

1. Housing Market Theory
   This involves analyzing the supply and demand dynamics of housing, including price mechanisms, market equilibrium, and the role of public and private sectors in housing provision. For Hong Kong, this theory is adapted to account for the unique constraints such as limited land supply, high population density, and government intervention through subsidized housing schemes like HOS.

2. Housing Assignment Model
   A specific model that examines how different households with varying economic resources and preferences match with available housing types. This model explains how subsidies like the HOS affect housing affordability and allocation, particularly in a market where public housing and private housing coexist but with significant restrictions and eligibility criteria.

3. Public Housing Policy and Welfare Theory
   Theories here treat housing as a social good or a basic right rather than a mere commodity. Hong Kong’s subsidized housing schemes including HOS are studied under frameworks that address social equity, redistribution, and welfare provision, emphasizing government’s role in securing adequate housing for low- and middle-income populations.

4. Social Stratification and Housing Aspiration Theory
   This theory explores how homeownership under schemes like HOS impacts social mobility, wealth distribution, civic participation, and intergenerational equity. It also considers the socio-political implications induced by housing affordability challenges and how housing policies shape class structures and social tension.

5. Policy Effectiveness and Market Intervention Theory
   These theories assess the effectiveness of government interventions in stabilizing housing markets, preventing speculation, and achieving social goals. The HOS is analyzed to understand the balance between market forces and regulatory controls and the challenges in maintaining that balance in a high-demand urban setting.

In summary, researchers employ a combination of housing market economic theories, social justice frameworks, and policy analysis models to study the Home Ownership Scheme and related housing issues in Hong Kong. These frameworks help to analyze the scheme’s role in addressing affordability, equity, and social stability within the city’s complex housing landscape."

My question 3: "What are the research gaps and issues on this topic?"

The reply: "Research gaps and issues on the topic of the Home Ownership Scheme (HOS) in Hong Kong, as identified in recent studies, include the following key points:

1. Intergenerational Inequality and Housing Dependency: There is a significant gap in social and housing opportunities between generations, where parents tend to be more resourceful than their adult children. This contributes to increased dependency of younger generations on parental financial support for housing transition. This dependency creates additional financial burdens on aging parents and highlights a novel social challenge of intergenerational inequality in homeownership access.

2. Limited Effectiveness in Alleviating Housing Affordability: Despite the re-launch of HOS and related schemes, the annual supply of subsidized homeownership units remains extremely limited. This restricts the options available to young people and middle-income families, forcing many to turn to the prohibitively expensive private housing market.

3. Widening Socioeconomic and Housing Inequality: Families with greater resources are able to provide more financial housing support to their children, while less resourceful families face greater challenges. This disparity exacerbates social and housing inequality, leading to wealth accumulation gaps and delayed social milestones such as marriage and independent living among the younger generation.

4. Demographic and Social Impacts: Difficulties in independent living and homeownership among young adults are linked to broader social trends such as delayed marriage and declining fertility rates. These trends have far-reaching implications for Hong Kong’s demographic profile and old-age care systems under an aging population.

5. Policy and Market Challenges: Research highlights the need for expanded subsidized homeownership supply, with calls to increase the scale of HOS and the Tenant Purchase Scheme (TPS). There are also challenges in balancing market intervention and speculation, especially given Hong Kong's unique land supply constraints and high private property prices.

6. Limited Uptake of Complementary Measures: For example, the Reverse Mortgage Programme, intended to support retired persons through home equity, has seen minimal adoption, indicating possible gaps in program design or public awareness.

In summary, research gaps revolve around addressing intergenerational inequality, insufficient supply and reach of subsidized homeownership, the deepening socioeconomic divides in housing access, and the broader social consequences of housing unaffordability. There is a recognized need for more comprehensive and targeted policy measures to enhance the effectiveness of HOS in meeting these challenges."

My question 4: "What are the Hong Kong public media-reported issues on this topic over the past 15 years?"

The reply: "Over the past 15 years, Hong Kong public media have reported multiple recurring issues on the Home Ownership Scheme (HOS) and related public housing policies:

1. Suspension and Uncertainty of HOS
   The HOS was suspended around 2003 due to economic downturn and falling housing prices post-1997 handover, which led to public questioning the need for subsidized homeownership. The scheme’s suspension raised concerns about rising unaffordability when property prices rebounded after 2004. Discussions and public consultations on whether and how to resume the HOS have taken place intermittently, with debates focused on sustainability, fairness in resource use, and market impacts.

2. Limited Supply and Long Waiting Times
   Public reports have highlighted the ongoing scarcity of subsidized homeownership units, with only a few thousand flats released per year. The oversubscription rates have been extremely high (e.g., 43 times in recent sale exercises), indicating huge unmet demand among low- to middle-income families.

3. Cutting or Ending Related Subsidy Schemes
   A trial subsidy scheme launched in 2021 to provide cash allowances to families waiting for public housing will not be extended beyond mid-2025, despite warnings from NGOs about its importance for poor households. Critics say that the government’s ending of such benefits imposes financial burdens on vulnerable families, especially as alternative transitional housing will only cover a fraction of those eligible and will be phased in slowly over years.

4. Intergenerational Housing Inequality and Socioeconomic Concerns
   Media have reported how rising property prices and limited HOS supply intensify difficulties for younger generations to attain homeownership independently. This results in greater dependency on parental support, exacerbating intergenerational inequality and delaying life milestones such as marriage.

5. Government Commitment and Policy Responses
   The current government has declared a strong commitment to addressing the housing problem, planning to increase supply significantly in the coming years through subsidized sale flats and other schemes. Recent policy measures target the allocation, supply, and financial arrangements to assist especially young people in homeownership.

6. Public and NGO Advocacy
   NGOs and civil society groups have continuously called for expansion and extension of subsidized homeownership schemes, warning against premature cancellation of support programs that aid grassroots families in housing. They emphasize the social impact beyond mere financial costs when evaluating subsidies or benefits.

In summary, Hong Kong public media portray the HOS-related issues over the last 15 years as a complex interplay of economic cycles, government policy shifts, supply-demand imbalances, social inequality concerns, and ongoing pressures from grassroots advocacy groups. The core challenges remain housing affordability, intergenerational equity, and ensuring adequate supply and support for lower- and middle-income households."

My question 5: "Propose 4 related research objectives and 2 related research issues on this topic for a part-time Housing Studies dissertation project with a duration of 4 months. Also suggest 2 primary research methods and 1 secondary research method for this project based on pragmatism."

The reply: "For a part-time Housing Studies dissertation project on the Home Ownership Scheme (HOS) in Hong Kong with a 4-month duration, here are four related research objectives, two research issues, and suggested research methods based on pragmatism:

Research Objectives

1. To critically examine the socio-economic impacts of the Home Ownership Scheme on low- to middle-income families in Hong Kong, especially in relation to housing affordability and social stability.

2. To explore the intergenerational dynamics and dependency on parental financial support in accessing homeownership under the HOS.

3. To assess the effectiveness of HOS resale and subsidy restrictions in preventing market speculation and promoting equitable access to homeownership.

4. To analyze public perceptions and attitudes toward subsidized homeownership schemes and their role in addressing housing challenges.

Research Issues

1. The limited supply and accessibility of HOS flats relative to the growing demand among younger and lower-income groups, contributing to persistent housing affordability problems.

2. Intergenerational inequality and increased dependency of younger generations on parental financial assistance for homeownership, with associated social and demographic implications.

Research Methods (Based on Pragmatism)

• Primary Research Methods:

  1. Semi-structured Interviews: To gather in-depth perspectives from low- to middle-income families, as well as policymakers or housing experts, about the socio-economic impacts and challenges of the HOS.

  2. Focus Group Discussions: To elicit diverse views and social attitudes toward subsidized homeownership and experiences with HOS eligibility, supply constraints, and resale restrictions.

• Secondary Research Method:

  • Document and Policy Analysis: Reviewing government policy documents, media reports, academic articles, and HOS scheme data to contextualize primary findings and understand the broader systemic challenges and policy evolution.

These objectives and methods align with a pragmatic approach by combining qualitative data from affected populations and stakeholders with critical analysis of existing secondary data to produce actionable insights within the limited project timeframe."

My question 6: "Comment on the originality, academic and practical values of this study. Also comment on the research ethics issues involved in this study."

The reply: "The originality of studying the Home Ownership Scheme (HOS) in Hong Kong lies in its focus on a unique, government-subsidized housing policy designed to address complex urban challenges such as acute housing affordability, land scarcity, and social inequality—issues very particular to Hong Kong's dense urban context and socio-political environment. Research such as Cheung Hoi Tat and So Chee Wing’s study critically examining the HOS’s socio-economic impact and market effects reflects originality by linking housing policy not only to market economics but also social stability and urban growth. Moreover, recent studies focusing on intergenerational dynamics and housing dependency provide novel insights into how family financial support shapes housing accessibility, an area less explored in earlier housing policy research.

Academically, such a study contributes valuable empirical data and theoretical synthesis across multiple disciplines including urban economics, housing studies, social stratification, and public policy evaluation. It enriches the literature by analyzing HOS impacts on social mobility, equity, and demographic patterns, thus bridging gaps between economic theory and lived social realities. It also informs debates on policy effectiveness in markets constrained by land scarcity and high prices. The project’s pragmatic mixed-methods approach, combining qualitative interviews with secondary policy analysis, strengthens its scholarly rigor by providing a holistic view of both systemic and subjective aspects of homeownership challenges.

Practically, the study informs policymakers, advocates, and housing agencies about the real-world implications of the HOS, highlighting supply limitations, intergenerational inequalities, and the scheme’s role in social cohesion. It can guide improvements in subsidy design, eligibility criteria, and complementary measures aimed at enhancing affordable homeownership. The focus on public perceptions and social attitudes also aids in tailoring community engagement and support services, enhancing the scheme’s social acceptability and effectiveness.

Regarding research ethics, critical considerations include:

• Informed Consent and Confidentiality: Collecting data through semi-structured interviews or focus groups requires clear communication to participants about study aims, voluntary participation, and data privacy protections, especially since sensitive financial and family dynamics may be discussed.

• Avoidance of Harm: Researchers should ensure that participating individuals or families do not face social stigma, psychological distress, or any repercussions from their disclosures about housing status or financial dependency.

• Data Integrity and Transparency: Ethical research demands accurate representation of findings without bias, and transparent acknowledgment of any limitations or conflicts of interest.

• Respect for Vulnerable Populations: Given that some participants may belong to low-income or socioeconomically marginalized groups, ethical sensitivity to power imbalances and fair treatment is essential.

• Cultural Sensitivity: Housing and family structures in Hong Kong have cultural nuances; researchers should be respectful of these norms and avoid imposing external value judgments.

In sum, the originality and academic value of this study arise from its focused analysis of a critical urban social policy within a distinctive socio-economic context, while its practical value lies in actionable insights for housing policy enhancement. Ethical conduct is crucial throughout, especially given the personal and socio-economic sensitivities involved."

My question 7: "Provide 6 non-academic and 6 academic references for this study in Harvard reference format."

The reply: "Here are six non-academic and six academic references for a study on the Home Ownership Scheme (HOS) in Hong Kong, provided in Harvard reference format:

Non-academic References

1. Hong Kong Housing Authority (2024) ‘Sale of Home Ownership Scheme Flats 2024 (HOS 2024) Application Guide for White Form Applicants’. Available at: https://hos.housingauthority.gov.hk/mini-site/hos2024/common/pdf/w_application_guide_e.pdf [Accessed 7 August 2025].

2. Wikipedia (2025) ‘Home Ownership Scheme’. Available at: https://en.wikipedia.org/wiki/Home_Ownership_Scheme [Accessed 7 August 2025].

3. CLIC (Community Legal Information Centre) (2025) ‘Sale and purchase of Home Ownership Scheme (HOS) flats’. Available at: https://www.clic.org.hk/en/topics/saleAndPurchaseOfProperty/sale_and_purchase_of_home_ownership_scheme_flats [Accessed 7 August 2025].

4. Hong Kong SAR Government (2025) ‘Govt facilitates young homebuyers’, news.gov.hk, 14 January. Available at: https://www.news.gov.hk/eng/2025/01/20250114/20250114_131050_255.html [Accessed 7 August 2025].

5. Legislative Council of Hong Kong (2022) ‘LCQ8: Subsidised home ownership schemes’, Press Release, 22 June. Available at: https://www.info.gov.hk/gia/general/202206/22/P2022062200324.htm [Accessed 7 August 2025].

6. Hong Kong Housing Authority (2020) ‘Sale of Home Ownership Scheme Flats 2020 Application Guide for Green Form Applicants’. Available at: https://hos.housingauthority.gov.hk/mini-site/hos2020/assets/pdf/App_Guide_GF(e).pdf [Accessed 7 August 2025].

Academic References

1. Choi, H.K. (2023) ‘The role of green form subsidized home ownership scheme (GSH) in fulfilling the homeownership aspiration of the public rental housing (PRH) households’, MPhil thesis, University of Hong Kong, Pokfulam, Hong Kong SAR. Available at: https://hub.hku.hk/handle/10722/336497 [Accessed 7 August 2025].

2. Jia, M. and Wu, X. (2023) ‘Social Consequences of Homeownership: Evidence from the Home Ownership Scheme in Hong Kong’, Social Forces, 101(3), pp. 1460–1484. doi:10.1093/sf/soac011.

3. Legislative Council Secretariat (2021) ‘Socioeconomic implications of home ownership for Hong Kong’, Research Brief, RB02/20-21. Available at: https://www.legco.gov.hk/research-publications/english/2021rb02-socioeconomic-implications-of-home-ownership-for-hong-kong-20210301-e.pdf [Accessed 7 August 2025].

4. Pan, W., To, T. and Tang, B. (2024) ‘Exploring Differences in Trends Between Private and Subsidised Homeownership: Empirical Evidence from Hong Kong’, China Perspectives, 2024/1. Available at: https://journals.openedition.org/chinaperspectives/16952 [Accessed 7 August 2025].

5. Wong, K. (2004) ‘Evaluate the Home Ownership Scheme in Hong Kong’, MPhil thesis, University of Hong Kong, Pokfulam, Hong Kong SAR. Available at: https://repository.hku.hk/bitstream/10722/55873/3/FullText.pdf [Accessed 7 August 2025].

6. Yung, Y.M. and Chan, C. (n.d.) ‘Fifty Years of Public Housing in Hong Kong: A Golden Jubilee Review and Appraisal’, Hong Kong: Chinese University Press. Available at: https://www.cityu.edu.hk/cityuoncities/upload/content/original/705520220301145217.pdf [Accessed 7 August 2025].

These references include the most relevant and up-to-date reports, academic publications, and government documents to support research on the Home Ownership Scheme in Hong Kong."

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