Property bargain hunters take a shine to decades-old subsidised housing flats in Hong Kong
- Home Ownership Scheme flats have risen in price by 14.4 per cent in the first quarter, or more than double the rate of the broader market
In the search for cheaper alternatives, potential homebuyers are looking to ageing government subsidised housing, pushing up prices for Home Ownership Scheme (HOS) flats at double the rate of the broader market.
In the first four months of the year HOS flats rose by 14.4 per cent, more than double the 7 per cent rise for private pre-owned homes, according to data from Ricacorp Properties and Centaline Property Agency.
The average price for HOS flats, the most actively traded among government subsidised flats, climbed to HK$5.19 million (US$661,558) in April, compared to HK$9.89 million for a private new home.
“This [upwards momentum] has spread to the markets of HOS flats and sandwich class housing,” said Derek Chan, head of research at Ricacorp Properties.
He said that further gains in prices for subsidised housing were likely in view of the high demand and limited supply.
Prices for larger government subsidising housing units are closing ground with comparables in the private sector, even though they lack amenities such as swimming pools, gyms and grandiose entranceways.