Housing Bureau officials hold a press conference to announce the policy framework for the Private Subsidised Sale Flat - Pilot Scheme on June 13, 2023. (PHOTO / HKSAR GOVERNMENT).
Hong Kong Chief Executive John Lee Ka-chiu on Tuesday approved the policy framework of the Private Subsidised Sale Flat — Pilot Scheme, which aims to harness private market forces to increase the supply of subsidized housing.
Under the program, flats will be sold at a 35 percent discount.
According to Lee’s 2022 Policy Address, the program will use three government sites in which developers will build subsidized flats. Two of them — a formed site in Tung Chung Area 122, and an unformed site on Cheung Man Road in Chai Wan — are expected to provide 1,600 and 700 flats respectively. The third site will be announced at a later stage, Housing Secretary Winnie Ho Wing-yin said at a news conference.
Ho said the government also is encouraging private developers to rezone their own land for developing subsidized sale flats by offering concessionary land premiums for the relevant land exchanges or lease modifications
Ho said the government also is encouraging private developers to rezone their own land for developing subsidized sale flats by offering concessionary land premiums for the relevant land exchanges or lease modifications.
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Sold at 65 percent of the market price, the dwellings under the program should cover a saleable area of no less than 26 squares meters, with more than 70 percent of them having a saleable area of at least 34.8 sq m, according to the Housing Bureau.
The government will not buy the unsold flats, which would be considered an incentive for private developers to enhance housing quality, while it will be mandatory for them to employ independent checkers to conduct final inspections. In addition, developers involved in the program should build welfare and community facilities.
“Developers experienced in private residential properties may bring fresh ideas to the design of the flats, providing more options for buyers,” Ho said.
She added that discussions between the government and the Hong Kong Mortgage Corp Ltd on mortgage insurance are underway.
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The buyer eligibility criteria, including income and asset limits, will follow those under the prevailing Home Ownership Scheme. For instance, the asset limit for a household of two or more people is HK$1.85 million ($236,000), and the limit for one-person applications is HK$925,000.
Speaking ahead of a weekly Executive Council meeting on Tuesday morning, Lee said encouraging the market to cooperate with the results-oriented government will help release the overall power of society.
“With an aim of improving the speed, quantity and efficiency of subsidized housing supply, the program can enhance the overall ability to supply subsidized sale flats,” Lee added.
