Hong Kong Housing Society asked to take over project for 1,940 starter homes after another public land tender fails

The Hong Kong Housing Society was asked to take on the project earmarked for no fewer than 1,940 starter homes for middle-class families after the government rejected the only tender, but an analyst said the arrangement could slow down construction progress.

The Lands Department announced the tender results on Wednesday, saying the bid submitted by Well Luck Limited, whose parent company is Grand Ming Group Holdings, was rejected as the “tendered premium did not meet the government’s reserve price for the site”.

The 1.05 million sq ft site at Yau Kom Tau in Tsuen Wan went on sale two months ago after being earmarked for a starter homes pilot project. Flats must be no smaller than 280 sq ft and are to be sold at about 80 per cent of the market value.

“Despite the cancellation of this tender, the government considers the site suitable for developing a starter homes project,” a Housing Bureau spokesman said, announcing that the Housing Society had been invited to take up the project.

The society said it was pleased to further discuss details with authorities, adding it would cooperate with the government in its effort to cope with residents’ housing needs.

163,000 Hongkongers apply for Home Ownership Scheme but number down on 2022

But Vincent Cheung, managing director of Vincorn Consulting and Appraisal, said the arrangement was not ideal. He said the Housing Society only had limited construction capabilities and the practice might slow down progress of the project.

Rather than asking the non-profit to take over the project, he said, the government should encourage more public-private partnerships and ease land sale conditions to attract more private developers to bid.

Hongkongers in transitional housing to get one-off allowance of up to HK$11,550

The aim of the project is to help those who are not eligible for Home Ownership Scheme (HOS) flats and cannot afford private housing, according to the bureau.

Only residents who have lived in the city for at least seven years and never owned a home locally are eligible. Their income should fall between the limits for applicants for the HOS and a level 30 per cent higher.

08:01

A glimpse inside Hong Kong’s notorious subdivided homes

A glimpse inside Hong Kong’s notorious subdivided homes

Recent land tenders have received a tepid response, as developers struggle with rising interest rates, an economic slowdown and the highest inventory in years.

Earlier that month, the Urban Renewal Authority rejected a tender for a big plot of land in Kwun Tong because the sole bid from Sun Hung Kai Properties failed to meet the minimum requirement.

Hong Kong developers line up home sales at heavy discounts to clear unsold stock

Earlier this month, CK Asset Holding priced homes at its new development Coast Line II in Yau Tong at levels not seen in seven years.