The Hong Kong Housing Society (HKHS) plans to spend about HK$600 million to develop two purpose-built, residential-care projects for middle-income elderly people in Tseung Kwan O and Jordan Valley. The Government has granted HKHS two sites - a 0.16 hectare lot in Tseung Kwan O and another 0.27 hectare site in Jordan Valley - to undertake a pilot senior citizen residence scheme. A spokesman for HKHS said the two proposed projects would provide 539 units. The Tseung Kwan O project comprises 225 units of between 269 square feet to 376 sq ft, while 314 units measure 236 sq ft to 365 sq ft at Jordan Valley near Ngau Tau Kok. Both projects were expected to be completed by the end of 2002, he said. The purpose-built properties with care services would be leased for life to middle-class elderly people, he said. Eligible tenants have to be 60 or older, and the entry lump sum rental would be about HK$300,000 to HK$600,000, he said. Rental would be charged solely to recover a unit's construction cost as the site was granted by the Government. Apart from paying the one-off lump-sum rental, he said, tenants also would be required to pay monthly management fees, including additional medical and care-service charges. The purpose-built buildings would be serviced by staff providing 24-hour-a-day assistance, and would feature a clinic, residents' club, swimming pool and library, he said. The project will call for applications next year. Applicants' suitability would be examined to ensure sufficient savings to support their living expenses, he said. Major developers also are considering building private housing for the elderly in view of the sector's growth potential. Sun Hung Kai Properties is considering redeveloping an industrial building in Tai Kok Tsui into sheltered accommodation for the elderly. The proposed project will provide 40 units of between 269 sq ft to 538 sq ft for singles and couples. Other developers are exploring opportunities in the sector after Chief Executive Tung Chee-hwa's decision to promote the senior-citizen residents scheme and encourage the private sector to participate. John Hui, first vice-president of the Hong Kong Institute Real Estate Administration, supports the concept, but warned facilities and affordability should be carefully designed to meet the needs of the elderly.