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Hong Kong housing
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Flats nearly 50 per cent cheaper for young couples and families among basket of measures to tackle Hong Kong housing crisis

Reforming pricing of subsidised units among measures Chief Executive Carrie Lam announces to tackle city’s long-running housing problems

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Chief Executive Carrie Lam at a press conference on her new housing initiatives. Photo: Winson Wong
Olga WongandShirley Zhao
Subsidised flats will be nearly 50 per cent cheaper for young couples and middle-class families as part of a basket of measures Chief Executive Carrie Lam Cheng Yuet-ngor announced on Friday in a bid to ease Hong Kong’s housing crisis by providing more affordable homes.
“Hong Kong people can be more reassured now, they don’t need to be bothered by the price increase of private flats,” Lam said, flanked by Financial Secretary Paul Chan Mo-po, housing minister Frank Chan Fan and development chief Michael Wong Wai-lun.

“There is no political motive,” Lam said in relation to the announcement coming a day before she marks her first year in office as the city’s leader. “It’s just because housing in Hong Kong is the most important, most complicated and most serious problem.”

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Home prices in May climbed to record levels again. Photo: Nora Tam
Home prices in May climbed to record levels again. Photo: Nora Tam

Reforming the pricing system for subsidised flats was one of six measures Lam announced that would benefit young couples and families struggling to buy homes. Other proposals included imposing a vacancy tax equivalent to two years of rental income on empty new flats, reallocating more land originally earmarked for private housing to build public flats, inviting the Urban Renewal Authority to build starter homes at Ma Tau Wai, imposing more stringent conditions on developers’ sales of uncompleted flats, and forming a task force to drive temporary housing projects launched by community groups.

Hours before the announcement, the latest government figures showed home prices in May climbing for the 26th straight month, although at a slower rate.

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