When HK$5 billion is not enough: Hong Kong transitional housing plan ‘more expensive than initially thought’
- Half of the money set aside for the scheme already allocated towards building just a quarter of the projected units
- One expert has called on the government to look for bigger plots to develop in hopes of capitalising on economies of scale
A HK$5 billion (US$645.1 million) sum earmarked for transitional housing in Hong Kong – the world’s most expensive property market – is not stretching as far as anticipated, with half the money already allocated towards building just a quarter of the homes planned.
The temporary flats, built with modular units pre-assembled on the mainland, have turned out to be more expensive to set up than initially thought, according to a surveyor.
A committee responsible for assessing funding applications for transitional housing projects on Thursday approved a second round of backing, which covers two projects in the New Territories.
In all, the committee has set aside HK$2.23 billion for five projects totalling 4,076 flats – just over a quarter of the target of 15,000 flats originally envisioned under the funding scheme.
The plan, announced early last year, is a government initiative to help low-income groups who live in poor conditions, such as subdivided flats, and who have not been able to move to public rental housing. The average waiting time for public housing in Hong Kong is 5½ years, with more than 155,000 applicants on the waiting list.
In a bid to ease the shortage, Chief Executive Carrie Lam Cheng Yuet-ngor more than doubled the budget for transitional housing from HK$2 billion to HK$5 billion in her policy address last October.