Half-priced 278 sq ft flat in Hong Kong will only cost HK$1.18 million – but there’s a catch, a clause stopping owners selling them for a profit for five years
Housing Authority wants higher discounts for subsidised flats to be linked to tougher restrictions on who apartments can be sold to, when, and how much for
The next batch of subsidised flats in Hong Kong will be available for as little as HK$1.18 million (US$150,000), but there is a catch.
The 4,431 flats at three housing estates in Cheung Sha Wan, Kai Tak and Tung Chung will be sold for HK$4,976 to HK$7,246 per square foot, or between HK$1.18 to HK$4.7 million, according to a Housing Authority paper seen by the Post.
However, tougher resale restrictions proposed by the authority would limit a homeowner’s ability to sell for a profit, although some lawmakers do not think they go far enough.
At the moment, homeowners can choose to sell their flat on the open market if they have paid back the discount they received when purchasing it.
The authority wants that to change, with people limited to who they can sell the flat to, and how much for, in the first two years of ownership. After five years, the flat can be sold on the open market, but only if the initial discount of 48 per cent, or HK$1 million in the case of the cheapest flats, has been repaid to the authority.