Low-income homebuyers rush to secure subsidised flats sold in Kowloon under Hong Kong government scheme
- Authorities offer 4,693 flats under a home ownership scheme for public housing tenants, with sizes ranging from 184 sq ft to 489 sq ft
- Homebuyers show little interest in homes available in New Territories, despite lower prices
Low-income Hong Kong homebuyers rushed to secure subsidised flats being sold at a prime location in Kowloon under a government housing scheme on Tuesday, giving the cold shoulder to thousands of others made available in the New Territories at lower prices.
The Housing Authority has put 4,693 flats on sale under the Green Form Subsidised Home Ownership Scheme for residents living in public housing estates, with sizes ranging from 184 sq ft to 489 sq ft.
Many buyers also showed a preference for larger homes instead of so-called nano flats, which were also released for sale on the same day.
Three properties were up for grabs under the scheme on Tuesday: Ko Wang Court in Yau Tong, with 2,021 flats; Kam Pak Court in Ma On Shan, with 1,896 flats; and Ching Tao Court in Sheung Shui, with 776 flats.
Ko Wang Court is located in Kowloon, while Kam Pak Court and Ching Tao Court are in the New Territories.
The cheapest flat is a 184 sq ft unit in Kam Pak Court priced at HK$790,000 (US$100,637), with a down payment of HK$39,500.
By 9am on Tuesday, several dozen aspiring buyers had arrived at a Housing Authority sales centre in Kwun Tong to select their homes, with most showing interest in the estate in Kowloon.
Restaurateur Tony Kong, 54, was among the early birds and said he was aiming to secure a home on a high floor in Ko Wang Court for his parents.
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“We have been hoping to move back to Kowloon. It will be more convenient for my parents in terms of transport facilities,” said Kong, who currently lives in Tai Po.
He eventually landed his first choice.
Homemaker Nancy Cheng, 76, said she felt excited after securing her first choice – a 400 sq ft low-floor sea-facing flat in Ko Wang Court.
“It is more convenient than the two other options,” said Cheng, who has lived in the Wah Fu public estate in Pok Fu Lam for more than 30 years.
“I never thought about buying a flat that would be smaller than what I am living in now. I don’t want to buy a flat for a lower standard of living. Instead, I want to improve my living quality.”
According to data from authorities, about 10 per cent of the flats are smaller than 230 sq ft, with many of them in the New Territories. A total of 160 homes at Kam Pak Court measure about 184 sq ft, while 387 at Ko Wang Court range from 185 sq ft to 223 sq ft.
Nano flats generally refer to homes with a saleable area smaller than 260 sq ft.
Down payments for the homes range from HK$100,000 to HK$130,000. Flats in Ko Wang Court are relatively more expensive, with an average price of HK$5,410 per square foot, as it is the only project in Kowloon and in an urban area.
The per square foot prices for Kam Pak Court and Ching Tao Court are HK$4,490 and HK$5,030, respectively.
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Only a handful of buyers among the group visiting the sales centre in the morning were seen considering flats from the other two estates in the New Territories.
The Housing Authority on Tuesday said 80 flats had been sold, comprising 73 from Ko Wang Court, four from Ching Tao Court and three from Kam Pak Court.
The Green Form Subsidised Home Ownership Scheme, regularised in 2018, aims to provide homebuyers from public housing estates with an opportunity to secure a subsidised flat.
Applicants must be public housing tenants, and they must move out from their current flats after purchasing one through the scheme.
Despite an economic downturn in the city due to the coronavirus pandemic, US public policy consultancy Demographia said in a recent report that Hong Kong had topped a list of the least affordable cities for property prices in the world for the 13th consecutive year.
Garment buyer Marcus Law, 36, managed to choose a two-bedroom sea-view flat on a high floor in Ko Wang Court for his family.
“I was quite nervous, but I’m at ease now,” he said. “It is a very nice flat. It has a sea view, but the price is relatively lower than that of private houses.”
Anthony Chiu Kwok-wai, the executive director of the Federation of Public Housing Estates, said nano flats did not address residents’ desires to improve their living environment.
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“I won’t have an incentive if I’m going to buy a home of a similar or even smaller size,” he said. “I’m worried those nano flats will give homebuyers even lower willingness.”
In his policy address last year, Chief Executive John Lee Ka-chiu said all subsidised flats completed from 2026 onwards must measure at least 280 sq ft.
The lack of interest shown towards temporary housing built in the New Territories has prompted authorities to suggest expanding eligibility.
Under current rules, 80 per cent of all approved applications must be from residents who have been waiting for a public flat for at least three years. But the proposal raised in a legislative discussion on Tuesday would lower that threshold to 60 per cent, freeing up space for other applicants.
