Hong Kong's "White Form Secondary Market Scheme" (White Form 2) is set to open its application period from March 6, 2025, at 8 AM until March 26, 2025, at 7 PM. This initiative aims to help low to middle-income families purchase second-hand public housing, expanding opportunities for home ownership in a city where property prices remain notoriously high.
Launched by the Hong Kong Housing Authority in 2013, the White Form 2 scheme allows eligible applicants to buy second-hand flats without the need to pay the premium usually required for such transactions. This program has seen adjustments over the years, including the recent decision to add 1,500 quotas for young people, as announced by the Subsidized Housing Committee on January 14, 2025.
In 2023, the quota for the White Form 2 scheme was set at 4,500, which included 4,050 for family applicants and 450 for individual applicants. With the new youth initiative, the 2024 scheme will now allocate 1,350 quotas for young families and 150 for young individuals, all aimed at applicants under 40 years old. This move is seen as a response to the growing demand for affordable housing among younger demographics.
Applicants must be at least 18 years old by the application deadline and under 40 years old at the start of the application period. The scheme is designed to enable first-time homebuyers to enter the market, particularly those who may not qualify for traditional housing options.
As part of the ongoing adjustments to the scheme, the Housing Authority's Subsidized Housing Committee also revised the income and asset limits for applicants. Effective August 27, 2024, the income limit for families with two or more members will be reduced from $62,000 to $60,000, and the asset limit will decrease from $1,470,000 to $1,230,000. For individual applicants, the income limit is now set at $30,000, with an asset limit of $615,000.
The balloting for the White Form 2 scheme will take place on April 24, 2025, at 10:30 AM, determining the order in which successful applicants can select their properties. Following the ballot, approval letters are expected to be issued in the third or fourth quarter of 2025.
To apply, candidates must pay a fee of $250 and can submit their applications online, by mail, or in person. The application process requires all documentation to be completed accurately, as any duplicate submissions will result in disqualification.
Once applicants are selected, they will undergo a thorough review of their income and assets to ensure they meet the eligibility criteria. If approved, they will receive a purchase qualification certificate, allowing them to buy properties under the scheme.
Successful applicants will have the opportunity to purchase a range of properties, including second-hand public housing and flats from the Housing Authority's residential sale schemes. While this provides a broader selection for buyers, it is essential to note that properties acquired through the White Form 2 scheme cannot be sold on the secondary market within two years of the purchase.
During this two-year period, owners are prohibited from selling their units in the secondary market, and the Housing Authority will not repurchase these properties. However, in cases of financial hardship, such as bankruptcy or significant income loss, owners may apply for special consideration with appropriate documentation.
After the two-year period, if owners wish to transfer or rent out their units in the open market, they must first pay the premium based on the property's market value at that time. Failure to comply with these regulations can result in severe penalties, including fines of up to $500,000 and potential imprisonment for up to one year.
For those navigating the complex landscape of property ownership in Hong Kong, understanding the White Form 2 scheme is crucial. It not only provides a pathway to home ownership but also emphasizes the need for careful planning and adherence to regulations.
As the application period approaches, potential buyers are encouraged to familiarize themselves with the process, including necessary documentation and financial requirements. Engaging with legal and financial advisors can also help streamline the application process and ensure compliance with the scheme's regulations.
The White Form 2 scheme represents a significant effort by the Hong Kong government to address the housing crisis and provide more opportunities for residents to secure affordable living arrangements. As the city continues to grapple with rising property prices, initiatives like these are essential in supporting the aspirations of many Hong Kong families.
