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Hong Kong housing
Hong KongHong Kong Economy

‘Starter Homes’ plan may offer prices ‘lower than half of Hong Kong market rate’

Task force to submit report on land supply in September next year

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A lack of land and sky-high property prices have made Hong Kong the most expensive city in the world to live in. Photo: Nora Tam
Shirley Zhao

A no-frills government-subsidised property scheme for young, first-time home buyers in Hong Kong might offer prices lower than half the market rate, a member of the Housing Authority said on Thursday.

Stanley Wong Yuen-fai said on radio that Hongkongers widely expected a scheme which would provide subsidised housing based on affordability instead of market price.

“If [the prices] are set based on affordability, we have reasons to believe that they will be roughly half the market rate ... or even lower,” he said.

The “Starter Homes” scheme was an election pledge by Chief Executive Carrie Lam Cheng Yuet-ngor to help young families unable to get on the city’s property ladder – those who cannot afford private housing but who earn too much to qualify for renting public flats.
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Hong Kong’s private residential property prices have surged for 13 months in a row, making the city – already the world’s priciest home market – even more unaffordable.

Wong said the scheme, expected to be highlighted in Lam’s policy address in October, had not been discussed within the authority, which builds and manages public housing estates. But he was confident the body would have enough public housing expertise to handle the project.

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Those who had previously bought a government-subsidised flat or owned any other property would not be eligible for the scheme, Lam said earlier.

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