‘Anything but a bargain’: prospective buyers criticise Hong Kong’s latest subsidised housing project
The De Novo development offers units at 80 per cent of the market rate, but many aspiring homeowners seek further price cuts
Prospective home buyers who viewed show flats in a controversial subsidised housing project in Kai Tak that went on sale were today widely unimpressed - claiming the homes are still overpriced.
Many of the first batch of visitors said they would still submit application forms, while hoping for a further drop in housing prices in the coming months before taking a final decision on whether to purchase or not.
READ MORE: Flats in controversial Hong Kong subsidised housing project ready for sale
Located next to Kai Ching and Tak Long estates, De Novo was set to offer 338 subsidised flats, ranging in size from 332 to 568 square feet and selling at 80 per cent of the market rate.
The most expensive units were priced at HK$6.627 million each, but project developer Urban Renewal Authority claimed middle-income families could afford them.
“Up to standard but not very impressive, as it doesn’t look very spacious,” said Ho Siu-kin, 60, who paid a visit to a two-room-flat for his son’s family. “Plus, paying more than HK$10,000 of mortgage for a two-room flat every month would be a lot of pressure for my kid.”
“I’m wondering how long it will take the construction project nearby to be completed,” said the retired Lee. “But I’ll suggest they submit application forms. After all, a 20 per cent discount is still better than nothing.”
Sharing a similar view with Lee was Roy Chan, 43. “I plan to sign up for it, but will not take a buy order too soon even if my application is successful,” he said. “I think home prices will go down further this year, and I will keep a close eye to see if there are better offers.”
READ MORE: Hong Kong housing minister vows property cooling measures to stay despite dip in home prices
While some took a cautiously optimistic attitude of what was available now, some said they would rather wait another year or two for property prices in the city to retreat further.
“Too expensive,” Wong Ming-kwan, told her daughter who was considering buying a new flat for her family. “They might be relatively cheap in the current market, but compared with six years ago, they are anything but a bargain.”
Late last year, the authority revised the eligibility criteria for its first subsidised housing project as it allowed single people to buy homes but with its income eligibility requirements almost halved from HK$60,000 to HK$33,500.
The restrictions follows a policy U-turn where the authority allowed single people – instead of only families of two people or more under its original scheme – to buys flats at De Novo on legal concerns. The HK$60,000 monthly limit was considered by some to be too generous for unmarried people.
