First-time buyers in Hong Kong may be allowed to use MPF savings to buy a house … but don’t hold your breath

First-time buyers in Hong Kong could eventually be allowed to withdraw their Mandatory Provident Fund savings to buy property, under proposals being considered by the pensions regulator.

Senior executives at the Mandatory Provident Fund Schemes Authority (MPFA) said on Wednesday that the idea is being studied, although it is unlikely to happen “any time soon” because it would only fuel the city’s sizzling property market, already seen by many as a bubble on the verge of bursting.

Their comments came at the MPFA’s annual media briefing at which it was also revealed that the scheme’s total assets value is on course to hit the HK$1 trillion (US$127.84 billion) milestone by 2020.

A strong stock market rally boosted the assets of Hong Kong’s compulsory retirement scheme to over HK$843.5 billion last year, which was faster than expected.

Allowing first-time buyers to access their MPF contributions early to fund a home purchase would undoubtedly help more Hongkongers to get a foot on the property ladder of the world’s most expensive housing market. Property prices in the city have rocketed to levels well beyond the reach of most people looking for their first home.