LI, Tao @ Hong Kong

The Hong Kong Housing Society (HKHS), the city’s second-largest subsidized home provider, can provide more flats for rent at costs lower than those in the private market, the organization’s Chairman Yeung Ka-sing said Thursday.

In a radio interview, Yeung said the organization plans to lease more units priced from HK$1,600 to HK$6,000 per month, to middle-income families who are not eligible to apply for public housing and cannot afford the housing cost in private market – the so-called “sandwich class” buyers.

“But it will depend on the availability of units left for rent,” said Yeung. “I think it will be difficult to get more land from the government, so we will have to exploit our existing land bank.”

But in a subsequent telephone interview, a staff member from the organization told China Daily the “plan” is still only an idea and that no initiative or solid preparation has been carried out at this moment.

Eddie Hui, professor in the Department of Building and Real Estate at the Hong Kong Polytechnic University, said that this private initiative is not very attractive to him.

“People may consider it unfair to subsidize accommodation of the sandwich class when many of the city’s low-income population are still waiting years to apply for public housing,” said Hui. “I believe resources should be allocated to the city’s poorest people as a priority,” he added.

Nevertheless, Hui said that because the number of these units is expected to be small, effects on the rental market as a whole will be limited.

The HKHS, a non-governmental and not-for-profit organization, currently operates over 33,000 units in 20 estates in Hong Kong. Its rental units fall into two groups catering to low-income families and families with relatively higher incomes, offering rates at different discounted market prices to reflect the differences in eligibility.

Apart from the regular rental units, the organization also provides some 900 flats for senior citizens at discounted rents.

In the early 90s, the organization developed properties for sale at concessionary prices to those eligible middle-income families, named the “Sandwich Class Housing Scheme”, subject to a five-year resale restriction.

The scheme completed 13 developments, providing over 12,000 units at that time. However, the city government suspended the sale of these subsidized flats in September 2001. Three developments in the scheme were then converted into private properties for sale at full market values.

China Daily

(HK Edition 06/04/2010 page3)

http://www.chinadaily.com.cn/hkedition/2010-06/04/content_9932147.htm