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Sandwich Class Housing in Hong Kong: A Complete Guide
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So, what is the "Sandwich Class Housing Scheme"? How is it different from HOS? If buying or renting sandwich class housing, what transfer restrictions and land premium arrangements need to be noted? This article will introduce the background and basic operation of sandwich class housing.
1. What is the "Sandwich Class Housing Scheme"?
The "Sandwich Class Housing Scheme" was launched by the Hong Kong Housing Society in 1993.
The purpose of the scheme was to address the housing problems of a portion of middle-income families in Hong Kong at that time: these families typically had incomes higher than the eligibility for public rental housing or HOS, but could not afford private housing prices, thus being called the "sandwich class."
Around 1997, the Hong Kong government adjusted its overall housing policy, and the Sandwich Class Housing Scheme subsequently stopped new development projects. However, some estates built during that period still exist and are traded in the secondary market.
Some well-known sandwich class housing estates include:
- Wang Fook Garden (Tsing Yi)
- Dieppe Court (Tseung Kwan O)
The overall number is relatively limited, making it a smaller-scale scheme within Hong Kong's subsidized housing types.
2. Main Differences Between Sandwich Class Housing and HOS
Many people confuse sandwich class housing with HOS, but there are differences in development agencies, positioning, and transfer arrangements.
Different Development Agencies
Sandwich class housing is developed and managed by the Hong Kong Housing Society. Meanwhile, the "Home Ownership Scheme" (HOS) is developed by the Hong Kong Housing Authority (HKHA).
Housing Positioning and Design
Sandwich class housing was originally positioned between HOS and private housing, so some estates are closer to private housing in design and amenities, for example:
- Estate-style management
- Parking facilities
- Some estates have clubhouses or recreational facilities
However, there are still differences between estates, and overall quality varies by era and design.
Secondary Market and Transfer Arrangements
There are significant differences in transfer arrangements between sandwich class housing and HOS.
HOS has a "premium-unpaid market" (commonly known as HOS secondary market), where eligible persons can purchase second-hand HOS flats without paying the land premium.
Sandwich class housing generally does not have a similar secondary market arrangement. If owners wish to freely sell their units on the open market, they usually need to apply to the Housing Society and pay the land premium to lift the original transfer restrictions.
3. Land Premium and Rental Restrictions for Sandwich Class Housing
For owners, potential buyers, or tenants, "land premium" is an important arrangement to understand in sandwich class housing transactions.
Owners: General Procedure for Paying Land Premium
The general procedure includes:
- Submitting an application to the Housing Society for land premium payment
- The Housing Society arranges a surveyor for property valuation
- The owner pays the premium within a specified period
- Obtaining a certificate of release of transfer restrictions upon completion
After obtaining the relevant certificate, the unit can usually be sold or rented on the open market at market price.
Tenants: Rental Restrictions to Note
Some sandwich class housing units may still be subject to transfer or rental restrictions; unauthorized renting may involve violations of relevant deeds or management regulations.
In such cases:
- The tenancy agreement may have legal risks
- Tenants may face eviction
- Deposit or rent arrangements may also be disputed
Therefore, it is important for tenants to check whether the unit has been released from relevant restrictions before signing a tenancy agreement.
4. How Should Buyers and Tenants Verify Property Status?
Since some sandwich class housing looks similar to private housing, buyers or tenants should conduct basic checks before transactions.
Common practice includes conducting a land search.
By checking property records at the Land Registry, one can confirm whether a "Certificate of Release of Transfer Restrictions" has been registered. If the relevant document has been registered, it usually means the unit has completed the land premium payment and can be traded on the open market.
Before conducting a sale or rental, it is advisable to consult a lawyer or professional real estate agent to ensure the transaction complies with relevant laws and deed conditions.
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