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Can't permanent residents apply for public housing at the time of divorce?

No way!

Non-permanent residents cannot apply for public housing as public housing applicants! You can only apply if you have immigrated to Hong Kong for seven years. Even if some people come to Hong Kong to be permanent residents of Hong Kong, they have to wait seven years before they can apply! That's what my mother does. She was born to a permanent resident of Hong Kong in the Mainland, and then she became a permanent resident of Hong Kong, but she must have lived for seven years before she can apply!

When applying for public housing, there is no limit on the number of days an applicant can live in Hong Kong each year. Therefore, applicants can return to mainland residents while waiting!