An exploratory study on the Hong Kong Housing Authority's Secondary Market Scheme (居者有其屋計劃第二市場): for Housing Studies students (information from perplexity.ai)
My question 1: "What is the Hong Kong Housing Authority's Secondary Market Scheme all about with reference to the subject of Housing Studies?"
The reply: "The Hong Kong Housing Authority's (HA) Secondary Market Scheme, formally called the Home Ownership Scheme (HOS) Secondary Market Scheme (SMS), was implemented in June 1997 to increase the turnover of subsidised sale flats (SSFs) and to provide more choices for public rental housing (PRH) households and Green Form Certificate holders to own homes. It allows these groups to purchase flats previously sold under different subsidised sale schemes such as the HOS, Private Sector Participation Scheme (PSPS), Tenants Purchase Scheme (TPS), and Green Form Subsidised Home Ownership Scheme (GSH), among others.
Key points about the scheme from the perspective of Housing Studies:
It is designed to enhance the housing ladder, enabling upward mobility for low- to middle-income families by facilitating home ownership through subsidised flats.
SSFs can be sold on the secondary market at freely negotiated prices, usually after a statutory waiting period (typically three years from initial assignment), without requiring the payment of a premium.
The scheme increases the housing stock turnover to meet the demand for affordable home ownership while freeing up PRH flats for allocation to families with more urgent needs.
The trading process in the secondary market is similar to the open market, where buyers and sellers negotiate prices or use estate agents.
The scheme distinguishes between "Green Form" buyers (PRH tenants and GFC holders) and "White Form" buyers (general public eligible via an Interim Scheme extended in 2013 and regularised in 2018), with the latter aimed at enriching the housing ladder and broadening access.
Buyers in the secondary market assume certain responsibilities, such as paying premiums if they sell or rent out flats in the open market later.
The HA also applies eligibility criteria to control access, ensuring these flats serve their intended purpose of subsidised home ownership.
Overall, from a Housing Studies viewpoint, the Secondary Market Scheme is an important policy tool in Hong Kong's housing strategy to promote affordable home ownership, improve mobility within the public housing sector, and optimize the allocation of limited subsidised housing resources for the needy population.
This detailed explanation reflects the scheme's goals, operation, and impact on housing policy and social mobility in Hong Kong."
My question 2: "What are the theories to study this topic?"
The reply: "To study the Hong Kong Housing Authority's Secondary Market Scheme in the context of Housing Studies, several relevant theories and theoretical frameworks can be applied:
Housing Policy and Social Justice Theories:
Examines housing as a fundamental right and explores government roles in ensuring equitable access to affordable housing.
Analyzes the impact of subsidized housing on social equity, poverty alleviation, and social mobility.
Investigates housing policy reforms aimed at addressing inequalities in housing allocation and promoting sustainability.
Housing Market and Housing Demand Theories:
Explores the interaction between supply and demand in the housing market, including the influence of subsidies and public housing availability.
Studies how subsidized sale flats affect housing prices, market segmentation, and household mobility in Hong Kong's dual housing market (private vs. public).
Examines economic and financial characteristics of households and how they affect housing demand and consumption patterns.
Welfare and Public Goods Frameworks:
Views housing as a social welfare good with implications for wellbeing, family stability, and community cohesion.
Considers the balance between market mechanisms and government intervention in housing provision and distribution.
Comparative Housing Policy Models:
Compares Hong Kong's housing policies and public housing schemes with models in other cities (e.g., Singapore) to assess strengths and weaknesses.
Uses lessons from other systems to understand possible policy innovations or alternatives for subsidized home ownership.
Social Mobility and Family Dynamics Theories:
Investigates how affordable home ownership through schemes like the Secondary Market Scheme influences social mobility.
Studies the socio-economic stability that stable housing ownership can provide to families, reducing risks of breakdown and poverty.
Urban Planning and Land Use Theories:
Explores land supply constraints and how these affect housing affordability and policy effectiveness.
Studies the implications of land policy and urban planning in the context of subsidized housing turnover and allocation.
These theories collectively enable a multidisciplinary approach essential for analyzing the complexities of subsidized home ownership schemes like Hong Kong's Secondary Market Scheme from economic, social, policy, and planning perspectives."
My question 3: "What are the research gaps and issues on this topic?"
The reply: "Research gaps and issues on the topic of Hong Kong Housing Authority's Secondary Market Scheme include the following:
Lack of Comprehensive Price Index: There has been a significant gap in the literature on the secondary market prices of subsidized flats under schemes like HOS Secondary Market Scheme (SMS). Existing housing price indices generally focus on private housing or the primary market but rarely on the secondary market for subsidized flats. This gap hinders a nuanced understanding of price movements and market dynamics specific to subsidized housing resale. Recent research efforts focus on constructing price indices specifically for this secondary market to fill this gap.
Impact of Policy Changes: The effect of government interventions such as the introduction of White Form Secondary Market (WSM) scheme and premium payment mechanisms on prices, demand, and accessibility in the secondary market remains under-researched. There is a need to study how these policies influence turnover rates, affordability, and social equity.
Supply and Demand Imbalances: Although the Secondary Market Scheme aims to improve housing mobility and provide affordable ownership options, studies indicate ongoing supply shortages and growing waiting lists for public rental housing. The interaction between recovered flats, new supply, and secondary market turnover needs deeper exploration to understand the long-term sustainability of the scheme.
Market Segmentation and Socioeconomic Effects: The segmentation between the subsidized housing secondary market and the private housing market raises questions about the socio-economic impact on different income groups. More research is needed into how this segmentation affects social mobility, housing inequality, and community stability.
Long-term Viability and Maintenance Issues: Concerns exist about estate management and maintenance problems in some TPS and subsidized housing estates, which could affect resale values and buyer confidence. Evaluation of these qualitative issues and their impacts on market performance warrants more research attention.
Transparency and Market Information: Secondary market transactions have historically been less transparent than private market transactions, limiting investors' and policymakers' ability to effectively monitor and respond to market trends.
These research gaps highlight the complexity and evolving nature of the subsidized housing secondary market in Hong Kong, suggesting a rich field for continued academic inquiry and policy evaluation to optimize the scheme's outcomes for affordability and social welfare."
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, public media and official reports in Hong Kong have highlighted several key issues related to the Housing Authority’s Secondary Market Scheme:
Housing Supply and Market Intervention:
There have been ongoing public debates about re-launching the Home Ownership Scheme and revitalizing the Secondary Market. Concerns include whether subsidized flats can effectively curb high property prices and whether government intervention in the housing market should be expanded or restrained. The government has been cautious, emphasizing increased supply as the fundamental solution to housing affordability rather than only relying on subsidized flats sales.
Price Volatility and Property Bubble Risks:
Reports warn of risks related to surging property prices that could lead to market instability or bubbles. The supply of subsidized flats through the secondary market has been used as one tool among others to stabilize the market.
Accessibility and Eligibility:
Expanding access through the White Form Secondary Market Scheme aimed at the general public, alongside the Green Form scheme for public rental tenants and certificate holders, has received public attention. Issues around eligibility criteria, quota limitations, and processes have been discussed to ensure fair access for low- and middle-income families.
Mortgage and Financing Arrangements:
Modifications to mortgage arrangements such as extending the mortgage default guarantee period from 30 to 50 years and increasing repayment periods have been used as measures to boost turnover and affordability in the secondary market. These changes have been welcomed but also scrutinized for financial risks.
Supply Challenges and Waiting Lists:
Despite efforts to enhance the supply of subsidized sale flats including redevelopment projects and new schemes (like Starter Homes), the waiting times for public rental and subsidized ownership flats remain a concern, fueling ongoing public discontent.
Youth Ownership and Social Mobility:
Programs targeting younger families and individuals via increased quotas in the White Form Secondary Market Scheme have been well received as they address home ownership aspirations for youth and the middle class.
Transparency and Market Monitoring:
There have been calls for greater transparency and improved data access regarding secondary market transactions to better monitor market trends and policy impacts.
Overall, media and official discussions over the years reflect a complex and evolving landscape where the Secondary Market Scheme is one component within broader housing affordability and supply challenges. Policy adjustments are ongoing to balance market stability, accessibility, and social equity in Hong Kong’s highly competitive housing environment."
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 focused on the Hong Kong Housing Authority's Secondary Market Scheme with a duration of 4 months, here are proposed research objectives, research issues, and research methods based on a pragmatic approach:
Research Objectives
To analyze the key factors influencing housing prices and transaction volumes in the Secondary Market Scheme of subsidized sale flats in Hong Kong.
To evaluate the impact of the White Form Secondary Market Scheme on housing accessibility and social mobility among different income groups.
To assess the perceived challenges and benefits of the Secondary Market Scheme from the perspectives of homebuyers and policymakers.
To explore the role of the Secondary Market Scheme in enhancing the housing ladder and facilitating the turnover of public rental housing.
Research Issues
The effectiveness of current policies (e.g., White Form quota system, mortgage arrangements) in improving access to subsidized home ownership through the Secondary Market Scheme.
The socio-economic impacts of market segmentation between subsidized secondary housing and private housing on housing affordability and social equity.
Research Methods
Primary Research Methods:
Survey Research: Conduct structured surveys targeting Secondary Market Scheme buyers (both Green Form and White Form buyers) to gather quantitative data on demographics, financial status, perceptions of affordability, and satisfaction with the scheme.
Semi-structured Interviews: Conduct in-depth interviews with key stakeholders such as Housing Authority officials, estate agents, and homebuyers to gain qualitative insights into the challenges, policy impacts, and suggestions for improvement.
Secondary Research Method:
Document and Policy Analysis: Review government reports, legislative council papers, Housing Authority publications, and previous academic studies related to the Secondary Market Scheme to contextualize primary data and identify policy evolution and scholarly findings.
This mixed-methods approach aligns well with pragmatism by focusing on practical outcomes and using diverse data sources for actionable insights within the project's timeframe and resource limits."
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: "Originality
This study on Hong Kong's Housing Authority Secondary Market Scheme offers originality by focusing specifically on the secondary market segment of subsidized housing—a relatively underexplored niche compared to private housing or primary subsidized sales. It aims to fill research gaps such as the impact of new policies like the White Form Scheme, price dynamics in the resale market, and the scheme's role in housing mobility. By combining quantitative and qualitative approaches, it brings fresh empirical data and nuanced stakeholder perspectives into the discourse, which adds novel insights to existing literature.
Academic Value
Academically, the study contributes to housing policy literature by examining a unique housing market mechanism in a highly urbanized, high-demand setting. It enriches understanding of government intervention in segmented housing markets, social mobility facilitated by subsidized housing, and the challenges of balancing affordability, accessibility, and market stability. The inclusion of policy effectiveness evaluation and socio-economic impacts supports broader housing studies, urban planning, and social equity scholarship. This targeted investigation can also serve as a comparative reference for studies in other global cities facing similar housing pressures.
Practical Value
Practically, the research informs policymakers, housing authorities, and social planners on the effectiveness and limitations of the Secondary Market Scheme. Its findings can guide adjustments to eligibility rules, pricing mechanisms, and support services to better meet public needs and improve affordability. Homebuyers and estate agents will benefit from better insights into market dynamics and policy impacts. Ultimately, the study supports evidence-based policy development aimed at enhancing housing stability and social mobility in one of the world’s most complex housing markets.
Research Ethics Issues
Key ethical considerations include:
Informed Consent: Ensuring that all survey and interview participants are fully informed about the study’s purpose, methods, and use of data, and voluntarily agree to participate.
Privacy and Confidentiality: Protecting participants’ personal data and ensuring anonymity, especially when dealing with sensitive financial and housing information.
Non-Maleficence: Avoiding any harm or discomfort to participants, particularly vulnerable groups such as low-income families.
Data Integrity and Transparency: Reporting findings honestly without fabrication or bias, respecting participants' rights and research integrity.
Conflict of Interest: Disclosing any affiliations or funding sources that could influence study outcomes.
Adhering to these ethical standards will uphold the credibility and social responsibility of the research project."
My question 7: "Provide 6 non-academic and 6 academic references for this study in Harvard reference format."
The reply: "Here are 6 non-academic and 6 academic references for this study in Harvard reference format:
Non-academic References
Hong Kong Housing Authority (2025a) HOS Secondary Market. Available at: https://www.housingauthority.gov.hk/en/home-ownership/hos-secondary-market/index.html (Accessed: 18 August 2025).
Hong Kong Housing Authority (2025b) Buying a Flat (White Form Status). Available at: https://www.housingauthority.gov.hk/en/home-ownership/hos-secondary-market/sms-white-form/index.html (Accessed: 18 August 2025).
Hong Kong Housing Authority (2024) Latest News: Applications for Sale of Home Ownership Scheme Flats 2023 and White Form Secondary Market Scheme 2023. Available at: https://www.housingauthority.gov.hk/en/global-elements/latest-news/index.html (Accessed: 18 August 2025).
Legislative Council (2025) LCQ8: White Form Secondary Market Scheme. Available at: https://www.info.gov.hk/gia/general/202506/25/P2025062500393.htm (Accessed: 18 August 2025).
South China Morning Post (2024) ‘Better chance for people under 40 to buy subsidised flats’. Available at: https://www.scmp.com/news/hong-kong/society/article/3282633/hong-kong-policy-address-better-chance-people-under-40-buy-subsidised-flats (Accessed: 18 August 2025).
The Standard (2025) ‘More homes for youngsters up for grabs starting today’. Available at: https://www.thestandard.com.hk/hong-kong-news/article/70696/More-homes-for-youngsters-up-for-grabs-starting-today (Accessed: 18 August 2025).
Academic References
Yip, N.M. (2019) ‘Home Ownership and Housing Policy in Hong Kong’, International Journal of Housing Policy, 19(3), pp. 368–389.
Ho, L.S. and Wong, Y.C.R. (2021) ‘Exploring Differences in Trends Between Private and Subsidised Housing Prices in Hong Kong’, China Perspectives, (2021/2), pp. 47–58.
Wong, M.B. (2018) ‘What Caused Hong Kong’s Housing Crisis? An Analysis of Policy Failure and Market Dynamics’, Hong Kong Journal of Social Sciences, 52, pp. 21-36.
Liu, S.K. (2017) ‘The Impacts of Resale Restrictions of Subsidized Sale Flats in Hong Kong’, Habitat International, 59, pp. 101–109.
Legislative Council Secretariat (2021) Socioeconomic implications of home ownership for Hong Kong (Research Brief Issue No. 2). Available at: https://www.legco.gov.hk/research-publications/english/2021rb02-socioeconomic-implications-of-home-ownership-for-hong-kong-20210301-e.pdf (Accessed: 18 August 2025).
Wong, Y.C. (2015) ‘Public Housing and Urban Planning in Hong Kong: A Comparative Review’, Urban Studies, 52(8), pp. 1507–1522.
These references provide a robust foundation for both the academic and practical dimensions of your dissertation on Hong Kong’s Secondary Market Scheme."
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