Will influx of 4,800 subsidised flats impinge on quota for public rental housing in Hong Kong?
Authorities reviewing initial proposal after experts fear effects of sudden and large supply
A plan to offer 4,800 cheaper, subsidised flats in the New Territories faces uncertainty after concerns were raised that this may impinge on the quota for public rental housing and further lengthen waiting times, according to a Hong Kong Housing Authority paper.
Some 4,800 flats in Fo Tan, originally built for public rental housing, were considered suitable for the next batch of flats to be sold under the scheme later this year, after a preliminary assessment by authorities.
Hong Kong housing starts tumble in 2017, no supply shortage seen
But on Friday, Stanley Wong Yuen-fai, chairman of the Housing Authority’s subsidised housing committee, said the government was reviewing the feasibility of the Fo Tan site after committee members expressed fears that such a large supply push could be risky.
Some 4,400 subsidised flats under another government scheme – the Home Ownership Scheme (HOS) – are already set to be sold on the market in the beginning of this year.
Wong said that it was “unprecedented” for more than 4,000 subsidised flats to hit the market in one go.
In the year 2016-17, some 3,000 subsidised flats were sold. An average of around 1,100 subsidised flats were sold annually before 2011, after which the government stopped production due to a market downturn.