In order to help tackle the problem of market failure, the government provides different subsidy programmes such as the Home Ownership scheme and My Home Purchase Plan.
Government Subsidy
1. The Home Ownership Scheme (HOS)
HOS aims at providing the poor a chance to purchase and rent public housing from the government. The flats are sold to eligible low-income residents at prices far below the overall market, at discounts between 30 and 40 percent, and received subsidies on the land value. HOS flats are intended for both Green Form (GF) and White Form (WF) applicants. WF applicants are households whose income and asset limits are higher than those prescribed for Public Rental Housing applicants but who may still have difficulty in purchasing a private residential flat in the second hand market. GF applicants are not subject to income and asset limits under HOS.
The total family income and net asset limits of WF applicants are as follows:
|Household Size |Household Income Limit |Net Household Asset Limits |
| |(HK$) |(HK$) |
|1 Person |$11,500 |$240,000 |
|2-5 Persons |$23,000 |$480,000 |
|6 Persons |$23,000 |$500,000 |
|7 Persons |$23,000 |$540,000 |
|8 Persons |$23,000 |$560,000 |
|9 Persons |$23,400 |$620,000 |
|10...