New World’s affordable housing project aimed at getting first-time buyers in Hong Kong on property ladder
- A proposal has been submitted to the Town Planning Board to build about 300 flats, with sizes ranging from 300 sq ft to 400 sq ft in Lam Hi Road, Yuen Long
- The project, which is still awaiting government approval, will be sold at cost to buyers who fulfil the eligibility criteria
New World Build for Good, the developer’s social enterprise unit, earlier this month submitted a proposal to the Town Planning Board to build about 300 flats, with sizes ranging from 300 square feet to 400 square feet, on a 30,300 sq ft site in Lam Hi Road, Yuen Long, according to an announcement on Monday.
It expects construction to start next year if everything goes according to plan, with the project likely to be completed as early as 2027.
“My vision is to start a new era in Hong Kong, by improving people’s housing issues and enabling the next generation to achieve the milestone of home ownership,” said Adrian Cheng, CEO of NWD and chairman of New World Build for Good. “We hope to refresh Hong Kong’s housing model and provide truly affordable homes for those in need.”
The site is about 10 minutes by bus from Yuen Long MTR station.
A NWD spokeswoman said the units will be sold at cost. “We will not make any profit from this project,” she said, without disclosing further details.
The eligibility criteria for buyers of the flats in the project includes meeting the maximum income and total assets requirements of Hong Kong’s Home Ownership Scheme (HOS), which are set at HK$33,000 (US$4,230) and HK$925,000, respectively, for individuals, and HK$66,000 and HK$1.85 million for a household of two or more members.
A 300 sq ft flat will cost as low as HK$2.7 million, or HK$9,000 per sq ft, which is based on the discounted land premium under the current HOS scheme plus construction cost.
Buyers will only be required to pay a down payment of HK$135,000, 5 per cent of the unit’s price.
The developer also proposed an innovative home loan scheme to alleviate the financial burden of the targeted buyers. Purchasers only require to pay 50 per cent of the flat’s cost when the flat is due for delivery, while the remaining 50 per cent can be paid 10 years after the occupation in one go or in instalments.
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The proposed home financing scheme has received positive response from banks and the Hong Kong Monetary Authority, according to the statement issued by New World Build for Good.
“Young families are increasingly finding it difficult to get on the property ladder, and the waiting time for public housing is getting longer,” said the statement.
The average waiting time for a public housing flat in Hong Kong has increased to 6.1 years, the longest since 1998, according to official figures released last Thursday.
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Chief Executive-elect John Lee Ka-chiu has proposed an advance allocation scheme under which flats at selected public housing estates could be offered to families on the waiting list before infrastructure and transport facilities are completed. Lee said he hoped to make the projects available a year earlier than expected.
An NWD spokeswoman said the subsidised housing project would occupy half of the site, and the remaining area would continue to be used as an open space for the public and warehouse for storing art.
“NWD has no plan to build a private residential project on the other half of the plot,” she said.
