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Hong Kong housing
Hong KongHong Kong Economy

Sweeping changes to Hong Kong’s subsidised housing policy set to be proposed by Chief Executive Carrie Lam, Post learns

Sources say proposals will make subsidised housing cheaper and impose a vacancy tax on newly built unsold homes

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The proposal would also impose a vacancy tax on new unsold flats. Photo: K. Y. Cheng
Shirley Zhao,Olga WongandJeffie Lam

Hong Kong’s leader is expected to announce a package of new policy proposals to combat the city’s unaffordable housing by Friday, including a plan to make government-subsidised housing cheaper, the Post has learned.

The package will also include a proposed vacancy tax on newly built but unsold homes, as well as taking back prime government sites reserved for private developers to bid on and build public-sector housing on them.

Chief Executive Carrie Lam Cheng Yuet-ngor’s biggest move on the housing front yet comes after home prices continued to rise in the world’s least affordable property market, fuelling public discontent. Friday will also mark the end of the current government’s first year in office.
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Sources said the package would first be discussed in an Executive Council meeting between Lam and her top advisers on Thursday.

“[The package] symbolises Lam’s report card, and she wants to rush this out before July 1,” a source close to the situation said. Lam took office on July 1 last year.

The proposed review of the subsidised housing pricing mechanism is likely to disconnect the prices from market rates to prevent prices from inflating each year, according to the source.

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