Editorial | Revival of Hong Kong subsidised homes scheme puts onus on developers
- Those who have benefited most from city’s booming housing market should now ensure push for cut-price flats is a success
Buying a private flat at just two-thirds of the market price may sound too good to be true in a city notorious for its sky-high property prices. The revival of a long-defunct subsidised home purchase programme – with more requirements for developers this time – is the latest attempt by the government to tackle the housing conundrum.
With supply woefully short and prices increasingly unaffordable, every viable measure should be considered. But there are also hurdles to overcome if the initiative is to become a success.
Under the revised pilot partnership scheme announced on Tuesday, developers may build subsidised flats on discounted government sites or on their own rezoned land after approval, with the units to be sold to eligible buyers at 65 per cent of the market rate. Two plots, in Tung Chung and Chai Wan, are expected to produce a total of 2,300 flats for sale by 2028-29.
The government appears to have introduced some sensible new features. For instance, a buy-back government guarantee will no longer apply, an arrangement said to make developers bear the risk and ensure the output will be marketable and of quality.
To address growing concerns over the so-called micro units, flats cannot be smaller than 26 square metres, and each project must have at least 70 per cent of flats with a minimum of 34.8 square metres.