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The construction site at De Novo in Kai Tak earlier this year. Photo: Sam Tsang

Urban Renewal Authority restricts single applicants to smaller flats in Hong Kong subsidised housing development

Announcement strives to balance interests of single applicants with those of families vying for flats in Kai Tak scheme

The Urban Renewal Authority unveiled restrictions for single applicants buying subsidised housing in a bid to set aside larger flats for families, following a policy U-turn last month affecting the Kai Tak development.

In November, the authority at first stated that it would not accept single applicants. But concerns arose that unmarried buyers could bring discrimination claims based on their marital status under the Sex Discrimination Ordinance.

To avoid legal risks, later last month the authority revised the scheme to accept single applicants, and said it would adopt the same eligibility criteria for singles as for family applicants, with monthly household income limited at HK$60,000 and total asset value capped at HK$3 million.

READ MORE: Hong Kong’s Urban Renewal Authority rethinks criteria for single home buyers

A public outcry erupted, with some arguing the income limit would be too favourable for single applicants.

“The needs of two-bedroom flats among families are greater compared to singles’ [needs], so we decided to reserve the bigger flats for families” said Daniel Lam Chun, the authority’s managing director.

Despite the restrictions, single applications were now to be considered alongside married applications, as the authority decided to use a computerised programme to randomly select successful candidates. An earlier proposal suggested putting the two groups in different queues, but it was scrapped on fears the authority might be subject to allegations of discrimination.

The subsided housing project at De Novo was to provide 338 flats at three sizes measuring around 300 sq ft, 400 sq ft and 500 sq ft. According to the latest policy announcement, single applicants would only be eligible to apply for the two smaller unit sizes.

READ MORE: Single people can buy subsidised flats in Hong Kong after sudden policy U-turn by Urban Renewal Authority

Lam said the authority targeted an official programme launch in January next year.

Prices for the subsided units ranged from HK$3 million to HK$6 million after discounts, said Pius Cheng Kai-wah, the authority’s executive director. The final prices would be published on the authority’s website during the first week of January, he added.

Cheng said price estimates were based on market information available on December 18, which was after the US Federal Reserve raised its interest rate for the first time in a decade.

“We have considered all kinds of impact [on property prices]” Cheng said. He said that prices would not be altered once they were decided upon in January

Eligibility criteria were unchanged, with the monthly household income and asset limits for single applicants capped at HK$33,500 and HK$1.5 million respectively.

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