FTU proposes youth home ownership scheme with HK$4,240 monthly minimum

Chief Executive John Lee will present a new policy address on Oct. 16. On Monday (Oct. 7), The Federation of Trade Unions suggested the government roll out a savings scheme for home ownership to help young people purchase a flat.

The scheme aims to offer assistance to those aged 21 to 40. Participants would make monthly contributions and use their accumulated savings to make a down payment at the end of the term, with the government guaranteeing the right to choose a property. The contribution level would be 20% of the median salary for employees aged 25 to 34, which in 2023 equates to a minimum monthly contribution of about HK$4240.

The plan outlines that the contributions would be invested in government bonds or fund projects. The period from the start of contributions to selecting a property could be up to 8 years.

The government would need to plan and establish a dedicated unit for the scheme, potentially located in the Northern Metropolis, Kau Yi Chau Artificial Island, and Tseung Kwan O. Participants would be granted the right to select a property. The plan suggests an annual quota of 600 places, to be implemented over three years.

Legislative Council member Kwok Wai-Keung noted that private housing prices have risen approximately fourfold over the past 20 years, while the median income for young people has only increased by 1.3 to 1.5 times. He emphasized the need for the government to increase the supply of subsidized housing.

Kwok also recommended that the plan should adopt a "strict entry, lenient exit" principle, requiring participants to meet income and asset limits upon entry, but only conducting an asset review, not an income review, at the time of property selection to prevent people from avoiding promotions and salary increases just to qualify for the plan.

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