Housing Association’s new mechanism land price arrangement at the beginning of next month

At the end of June, the government revised the pricing mechanism for subsidizing the sale of houses and sold them in disguised form. The Hong Kong Housing Society (hereinafter referred to as the HS) has expressed concern that the new mechanism will put pressure on the financial situation of the HS in the long run.

The HS said that it will meet with the government in early August to discuss the land price arrangement of the HS project under the new mechanism.

At present, the Housing Society is required to pay a land price of one-third of the market price for the construction of rental projects. The subsidy for the sale of housing projects is subject to half of the market price. It is learnt that the Government will, with reference to the Housing Authority’s project, exempt the land premium of subsidised housing projects (whether for rental or sale purposes). However, if it is used for sale, it will charge a land leveling fee equivalent to about 30% of the project cost.