Subsidised Flats in Urban Areas: Pricing Mechanism Under Scrutiny

The Latest Subsidised Flats Offering

The Hong Kong Housing Authority has approved the Home Ownership Scheme sales for urban areas, introducing 7,132 subsidised flats with a 30% discount on market prices. Available homes will be priced between HK$1.43 million (US$183,400) and HK$4.67 million, located in areas such as Kowloon’s Kwun Tong, Kai Tak, and Yau Tong.

Discount Rate and Pricing Mechanism

• The revised pricing mechanism considers family budget and subsidies.
• The median household income now dictates affordability, ensuring at least 75% of flats are within reach for eligible buyers.

Affordability Comparison

Subsidised flats in Kai Tak, priced at a 30% discount, have a selling price per square foot of HK$9,230, compared to HK$16,008 in nearby projects. This highlights the affordability of the housing initiative.

Down Payment Insights

Eligible buyers face down payments of just 5-10%, making the opportunity accessible amidst rising costs seen in other regions such as Singapore.

Public Demand for Urban Flats

Lawmaker Scott Leung Man-Kwong expresses optimism about public interest in urban subsidised flats, while colleague Chan Hok-fung questions whether the discount will satisfy potential buyers.