New World launches subsidised housing in Hong Kong to spur affordable home ownership

As part of New World Subsidised Housing, the developer will offer 300 flats in the New Territories West

Hope to refresh Hong Kong’s housing model and provide truly affordable homes for those in need, says CEO Adrian Cheng

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NWD will donate a plot in New Territories West (above) to New World Build for Good, its social enterprises unit, which will develop the flats. Photo: Winson Wong

Published: 2:39pm, 6 Dec 2021Updated: 9:53pm, 6 Dec 2021

Hong Kong property firm New World Development (NWD) has announced the launch of subsidised homes at discounts ranging from 40 to 50 per cent, aimed at helping lower income groups get on the property ladder.

As part of New World Subsidised Housing, the developer will offer 300 one-, two- and three-bedroom flats on a site in the New Territories West with a gross floor area of 130,000 sq ft to buyers who are permanent Hong Kong residents and first-time buyers aged between 25 and 45.

The scheme will target those living in subdivided flats or those who are second-generation public housing renters. The eligible buyers should also meet the maximum income and total assets requirements of Hong Kong’s Home Ownership Scheme (HOS), which are set at HK$33,000 (US$4,230.5) and HK$85,000, respectively, for individuals, and at HK$66,000 and HK$1.7 million for a household of two or more members.

Adrian Cheng, CEO of New World Development. Photo: Handout

“My vision is to start a new era in Hong Kong, by improving people’s housing issues and enabling the next generation to achieve the milestone of home ownership. We hope to refresh Hong Kong’s housing model and provide truly affordable homes for those in need,” said Adrian Cheng Chi-kong, NWD’s CEO.

A family in Hong Kong, the world’s least affordable housing market, will need to save for 20.8 years to afford a home in the city, according to the annual Demographia International Housing Affordability Study. Moreover, the Hong Kong Monetary Authority, the city’s de facto central bank, said last month that the average mortgage repayment period had hit an all time high of 333 months, according to its residential mortgage survey conducted in October.

Monday’s announcement also comes after Reuters reported a few months ago that Chinese officials had told major Hong Kong developers they should use their resources and influence to champion state interests. The developers were reportedly asked to help solve Hong Kong’s chronic housing shortage, which has previously been blamed on land hoarding by these developers.

“We hope this is a start and other industry players with land can join us,” said Eric Ma, director of New World Build for Good, the developer’s social enterprise unit. “This project is not for making profit. It is a us giving back to the society – a contribution.”