A pro-Beijing party has proposed that the government launch a monthly savings plan that would help young adults purchase subsidised flats in the city’s expensive property market.
The Hong Kong Federation of Trade Unions (FTU) outlined their proposed initiative, which it called the Youth Home Ownership Saving Scheme, at a press conference on Monday. The scheme would target those aged 21 to 40 who do not have any property.
The party proposed that those partaking in the scheme would contribute a minimum of HK$4,240 per month. These contributions would be invested in bonds or funds designated by the government to support Hong Kong’s development.
The money the participants contribute would go towards a down payment. After a number of years, they can select and purchase subsidised flats, according to the proposal.
Lawmaker Kwok Wai-keung, a member of the FTU, said in a statement that an affordable and clearly defined savings plan could help the youth achieve their home ownership dreams.
Apart from facilitating youth to purchase property, the party said the scheme would also allow them to “join the ranks of people to develop a better future of Hong Kong.”
The scheme would be voluntary and participants can exit if they wish, the party proposed. Those who withdraw early or fail to make scheduled contributions would have their principles refunded without receiving any interest.
The party suggested that subsidised flats under the scheme can be built in new areas, such as the Northern Metropolis and the Kau Yi Chau Artificial Islands projects. Both are massive government development plans that have been criticised for their large price tags and potential damage to the environment.
Policy Address
The FTU’s suggestions comes as Chief Executive John Lee is scheduled to deliver his third Policy Address on Wednesday. Local media outlets reported citing sources that Lee will roll out a home ownership saving scheme for young adults, but that it would be different from the one proposed by the FTU.
In July, Lee said he had heard of some people ensuring that their monthly earnings remained below the limit for applying for public rental housing so that they could qualify.
Lee called on young people not to waste “potential and opportunities” by “deliberately” depressing their earnings.
