Home Ownership Scheme and Private Sector
Participation Scheme

The Home Ownership Scheme (HOS) and the supplementary Private
Sector Participation Scheme (PSPS) were introduced in 1978 and 1979
respectively to provide flats for sale to lower and middle-income families
and public rental tenants at prices well below market value. About
260 000 flats have so far been sold to eligible families. These include
84 404 flats produced under the PSPS which makes use of the resources
of the private sector to produce flats for sale at subsidised prices.
Private-sector applicants are not allowed to own domestic property within
two years prior to the submission of their applications and are subject to a
household income limit of $30,000 a month. These restrictions, however,
do not apply to public rental tenants, residents of temporary housing areas
and cottage areas managed by the HA, households displaced by the
clearance of squatter areas for development, natural disaster victims and
junior civil servants.

About 41 per cent of the families who bought property under the schemes
were public rental tenants. They have surrendered their rental flats in
return for allocation to those in greater need. Priority is also extended to
prospective tenants so that they can bypass public rental housing. During
the year, 6 174 flats and 14 700 flats were sold under the HOS and the
PSPS schemes. The schemes were over-subscribed by nine times.

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