‘Starter homes’ scheme targeting Hong Kong middle class set for launch before end of 2018
- First batch of flats forms part of drive to boost home ownership in city
- Target audience is those too poor to afford a flat in world’s most expensive residential property market yet too rich to qualify for a public rental unit
A new kind of residence will be up for grabs among Hong Kong’s middle class later this year, as the government launches a “starter homes” scheme for those too poor to afford a flat in the world’s most expensive residential property market yet too rich to qualify for a public rental unit.
The first batch of “starter homes” – to be built by the Urban Renewal Authority – forms part of a drive to boost home ownership in the city. The authority on Tuesday approved eligibility criteria for the 450 flats it is to build in Kowloon. The project for first-time buyers will add a rung on the city’s housing ladder, but will it help solve the city’s housing crisis?
1. How many types of subsidised housing are there in Hong Kong?
With the new “starter homes”, there are now three forms of subsidised offerings for sale. The long-established Home Ownership Scheme (HOS) is open to families earning HK$60,000 (US$7,600) per month, or one-person households earning half that amount. HOS flats are sold at a market rate discount, determined by an affordability test using the median household income.