Home Ownership Scheme (HOS) is designed to assist residents to buy their own home. HOS flats are subsidized public housing and the buying, selling and mortgage of these flats are subject to certain restrictions.

However, the Housing Authority accepted the government's recommendation on cessation of production and sale of HOS flats indefinitely from 2003 onwards. In January 2006, the HA decided to offer for sale in phases the unsold and returned HOS flats (collectively known as surplus HOS flats) from 2007 onwards.

In this section, you will be able to read about the purchase and sale of HOS flats, including eligibility and application details. Existing HOS flat owners can also browse for information on ownership and property management.

HOS flat owners, from the third year onwards from the date of first assignment, may sell their flat in the HOS Secondary Market to tenants of rental housing estates managed by the HA or the Housing Society (HS), authorized residents of Interim Housing managed by HA, or holders of Green Form Certificate issued by the HD without payment of a premium to the HA.

Flat owners may obtain application form of Certificate of Availability for Sale from District Tenancy Management Offices, and the Home Assistance Loan Unit. The completed application form should be submitted to the District Tenancy Management Offices concerned together with application fee and a copy of the Deed of Assignment.

The application fee shall be paid in the form of a crossed cheque / cashier order payable to the "Hong Kong Housing Authority" (existing charge is $800). A Certificate of Availability for Sale will be issued to the HOS flat owner after the HD has verified the application.

Owners who have sold their flats, and their spouses are not eligible to join any of the subsidized housing scheme administered by the HA (including public rental housing, HOS, PSPS, HALS, HOS Secondary Market Scheme, TPS) and any subsidized scheme administered by the HS.

Exceeding five years

When the HOS flat exceeds five years from the date of first assignment, the owner can sell, let or assign the flat in the open market subject to payment of a premium to the HA. However, the owner of the flat which exceeds five years from the date of first assignment can enter into agreement for sale and purchase providing it is a condition of such agreement that the premium as assessed by the Director of Housing be paid prior to the assignment and within 28 days of the date of the agreement or within such period as may be otherwise stipulated by the Director of Housing. Any person who sells, lets or assigns the flat before payment of the assessed premium commits an offence under the Housing Ordinance and is liable on conviction to a fine of $500,000 and to imprisonment for one year and such alienation or assignment will also be void.

The Housing Authority (HA) formally established the HOS Secondary Market Scheme (HOSSMS) in June 1997. It enables public housing tenants and Green Form Certificate holders to purchase flats sold under Home Ownership Scheme (HOS) / Private Sector Participation Scheme (PSPS) / Tenants Purchase Scheme (TPS) (hereinafter collectively referred to as HOS flats) with the date of first assignment from the third years onwards. The launch of the HOSSMS increases the turnover of HOS flats so as to satisfy the society's need of subsidized home ownership. Apart from providing more choices for public rental housing tenants and Green Form Certificate holders to own a home, more public rental housing can be recovered for allocation to families in need.

Transactions in the HOS Secondary Market are similar to that in the open market. The purchaser and the seller may negotiate the price freely and conclude the deal either directly or through an estate agent. Purchasers of flats in the HOS Secondary Market will assume the liability to pay the premium if they sell their flats at the open market in the future. Please click the following links for more information on sales of flats at the HOS Secondary Market:

Sell in the Secondary Market:HOS flat owners, from the third year onwards from the date of first assignment, may sell their flat in the HOS Secondary Market to tenants of rental housing estates managed by the HA or the Housing Society (HS), authorized residents of Interim Housing managed by HA, or holders of Green Form Certificate issued by the HD without payment of a premium to the HA.

Flat owners may obtain application form of Certificate of Availability for Sale from District Tenancy Management Offices, and the Home Assistance Loan Unit. The completed application form should be submitted to the District Tenancy Management Offices concerned together with application fee and a copy of the Deed of Assignment.

The application fee shall be paid in the form of a crossed cheque / cashier order payable to the "Hong Kong Housing Authority" (existing charge is $800). A Certificate of Availability for Sale will be issued to the HOS flat owner after the HD has verified the application.

Owners who have sold their flats, and their spouses are not eligible to join any of the subsidized housing scheme administered by the HA (including public rental housing, HOS, PSPS, HALS, HOS Secondary Market Scheme, TPS) and any subsidized scheme administered by the HS.

1) Apply for Premium Assessment

Premium of a flat is assessed with reference to the prevailing market value of the flat, the initial market value and purchase price of the flat as specified in the first assignment or (for resale flat) the last assignment between the HA and the purchaser and calculated by using the formula as stipulated in the Schedule to the Housing Ordinance. In other words, premium is calculated by converting the original discount into the current value.

If an HOS flat is owned by two persons, i.e. joint ownership, both owners have to sign the application form for premium assessment, with the same signatures as in the ASP; if a flat is owned by one person, then only one signature is needed. If an owner wants to authorize a friend or a relative to process the application, he / she must present a written authorization stating names and identity card numbers of the authorizer and authorizee, and address of the respective property. Flat owner must sign the authorization letter with the same signature as in the ASP.

2) Submit the Application Form

Applicants have to provide a daytime contact telephone number so that the concerned staff can make appointments to inspect the flat and conduct assessment.

Completed application form should be returned to the following offices together with a copy of the assignment and cheque / cashier order at $6,190 (subject to regular adjustments):

For payments by cheque, the payee should be "Hong Kong Housing Authority". The administration fee is not refundable, but it will be deducted from the premium provided that the premium is paid within the specific period.

Applicants should check that all necessary documents are submitted; otherwise the processing of premium application may be held up.

The assessed premium is valid for two months. Payment after the validity period will not be accepted. Should an applicant request for a fresh assessment, he / she must re-submit an application and pay the administration fee.

3) Procedure 3: Receive On-site Flat Inspection and the Notice of Assessment

The HD (or its appointed surveyor) will make appointment to inspect the flat, which the owner has applied for premium assessment, and conduct assessment.

Applicants will usually receive the Notice of Assessment issued by the HD (or its appointed surveyor) approximately one month after the HD received their applications and the requested information in full. Notification period may be longer for HOS courts that have just expired alienation restriction period, of which more applications are common.

4) Pay the Premium or Lodge an Objection / Appeal Pay the Premium

HOS flat owners must pay the premium within two months from the date of the Notice of Assessment. Otherwise they have to re-apply and pay administration fee at $6,190 .

Object / appeal against Premium Assessment
According to the Housing Ordinance, HOS flat owners who disagree with the prevailing market value assessed by the HD (or its appointed surveyor) have to lodge a formal appeal to the Lands Tribunal within 28 days from the date of the Notice of Assessment. Flat owners can also lodge on objection to the HD (or its appointed surveyor). Any late appeal / objection will not be accepted. The same procedures and appeal / objection period apply to both initial premium assessment and subsequent reviews.

If a flat owner has lodged an objection to the HD (or its appointed surveyor) or lodged an appeal to the Lands Tribunal, he / she may pay the premium within the time limit specified in the Notice of Assessment before he / she can sell, let, mortgage or assign the flat. The flat can only be sold, let or mortgaged after the flat owner has paid the premium.

If the flat owner has lodged an appeal to the Lands Tribunal but the case has not been heard, the HD (or its appointed surveyor) can revise the assessed premium before the Lands Tribunal has made a determination.

Before the Lands Tribunal has made a determination, HOS flat owners can sell, let or mortgage the flat after payment of the assessed premium within the time limit specified by the HD. Upon conclusion of the appeal, if the assessed premium is reduced, the reduced amount will be refunded to the owner. If the assessed premium is increased, the owner will be required to pay the increased amount to the HA.

5) Receive the Certificate for Removal of Alienation Restrictions

After the HOS flat owner has paid the premium (must be in the form of cashier order or a crossed cheque from a solicitor firm), the HD will issue the Certificate for Removal of Alienation Restrictions certifying that the premium has been paid in accordance with the Schedule of the Housing Ordinance, and alienation restrictions on the flat are removed. Flat owner should arrange with his / her solicitor to register the Certificate for Removal of Alienation Restrictions at the Lands Registry.