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Jeffie Lam

Fanny Fung

A new type of subsidised housing tailor-made for the "sandwich class", possibly in suburban areas, is being considered by the government.
Sources said Chief Executive Leung Chun-ying introduced the proposal at a recent closed-door meeting with the Federation of Trade Unions.
"He said he has the idea to introduce another layer of subsidised housing for people whose income is over the threshold for public rental flats, but who cannot afford Home Ownership Scheme [HOS] flats," a source told the South China Morning Post.
The "sandwich class" flats being considered would be located away from city centres.
"He said it may be in areas with a less developed transport network, pointing out that the HOS flats in Tai O were a big hit when they were launched," another source said, referring to Tin Lee Court.
Leung said the scheme would not be a rent-to-buy model as that was "not a good model", said the source. The government introduced a controversial rent-to-buy scheme, formally known as the My Home Purchase Plan, in 2010.
Under the scheme, the government let middle-income families rent Housing Society flats for as long as five years at a fixed amount. During that period, tenants could choose to put half of the total rent paid towards a down payment to buy the home.
Leung scrapped the scheme after he became chief executive in 2012.
The source said the new proposal would be popular among young couples and singles.
At Tin Lee Court in Tai O on Lantau, 12,500 people joined a ballot to buy the 85 flats on offer earlier this year. They were priced from HK$641,100 to HK$897,300 for homes of 478 to 482 sq ft.
But HOS flats in better locations, such as the Mei Ying Court in Sha Tin, cost HK$2.2 million to HK$2.85 million for homes of about 450 sq ft.
The monthly income threshold for a single person to qualify for HOS flats is HK$23,000. The asset limit is HK$505,000.
As of the end of September, there were about 263,800 families and individuals on the waiting list for public rental housing. The average waiting time for applicants was 3.1 years.
The monthly income limit for a single person is HK$9,670. The asset limit is HK$221,000.
Terence Chong Tai-leung, a professor of economics at Chinese University, said the proposal outlined by the FTU sources would not be popular if the flats were too remote.
"The school networks will not be good and transport costs will be high," he said.
He said the government should instead think about another layer of subsidised housing between HOS flats and private property.
"Many families who make HK$50,000 to HK$60,000 a month cannot afford homes in the private sector," he added.
Long Term Housing Strategy Steering Committee member Lau Ping-cheung suggested that some of the newly constructed or planned public housing blocks intended for rental could be sold to current public housing tenants instead, as a new way to help them climb up the housing ladder at affordable prices.
"This will not reduce the supply of public rental housing flats. The new flats will be sold only to green form applicants. After they move into their newly bought flats, their old homes will be freed up for applicants on the waiting list," he said.
Green form applicants are those currently living in public rental flats.
The Chief Executive's Office declined to comment on the proposal described by the Federation of Trade Unions.
 


Hong Kong leader has plans to build homes for 'sandwich class'

Tin Lee Court in Tai O. Photo: Bruce Yan

Tin Lee Court in Tai O.

News

Hong Kong

Chief executive hopes to build flats in suburbs for those edged out of other subsidy schemes


A new type of subsidised housing tailor-made for the "sandwich class", possibly in suburban areas, is being considered by the government.


Hong Kong leader has plans to build homes for 'sandwich class'

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Chief executive hopes to build flats in suburbs for those edged out of other subsidy schemes

Chief executive hopes to build flats in suburbs for those edged out of other subsidy schemes