Housing Group Proposes MPF Withdrawal for Home Buyers Ahead of Policy Address

The Federation of Public Housing Estates submitted a set of housing proposals on Wednesday (2 September) ahead of the Policy Address due on 16 September, calling on the government to study allowing first-time homebuyers to withdraw part of their Mandatory Provident Fund (MPF) savings for self-occupied property purchases.

Federation Chairman Man Yu-ming cited end-2024 figures showing that around 125,000 MPF members have accumulated more than HK$1 million in their accounts, and suggested these funds could be partly unlocked for home purchases. Vice-chairman and lawmaker Scott Leung Man-kwong said the flexibility would particularly help young families under 40 who struggle with down payments, while Singapore’s Central Provident Fund (CPF) model could serve as a reference, requiring owners to refund their accounts if they profit from resale of the property.

The Federation also proposed lowering the White Form down payment requirement for subsidised housing from 10% to 5%, aligning it with the Green Form standard. Other recommendations include expanding Green Form eligibility to public rental housing applicants who have waited three years or longer, and raising the minimum saleable area for subsidised flats in the Northern Metropolis to roughly 350 square feet, with at least 50% being larger units.

Financial Secretary Paul Chan has previously acknowledged that MPF was designed for retirement protection and that early withdrawal may weaken that safety net, but said using MPF for home purchase combined with reverse mortgage in retirement could also become a form of retirement protection, and the government will consider the proposal.

Sources: Federation of Public Housing Estates, SCMP, Sing Tao, HK01.