Home ownership pricing and market price decoupling
Hong Kong Wenhui News Chief Executive Lin Zhengyue launched a new six-invitation at the end of last month to help the public get on the bus. The outside world said that it has no achievements in housing policy, including decoupling the pricing of subsidized homes from the market price. Reduce the price of HOS flats to 50% off the market price. The Government will also convert 9 private lands into public housing sites. It is estimated that 10,000 gangs will be provided to meet the target of subsidizing the sale of flats and increasing the supply of subsidised housing units.
In order to make the subsidized sale flats more affordable for low- and middle-income families, the Government will revise the affordability test under the HOS pricing mechanism and use the median monthly household income of non-owner households as a reference to replace the White Form family applicants. The income limit and the number of units that will ensure affordability will increase from 50% to a minimum of 75%.
Take the Kai Tak Kai Court in the New Home Ownership Scheme this year as an example. Suppose a 400-square-foot flat is sold at a discount of 30% under the old mechanism. The price is about $9.8 million and the selling price is about $3.9 million. 50% off sale, the price is lowered to 7,280 yuan, the price is reduced to 2.9 million yuan.
Under the new mechanism, the affordability test for HOS pricing will no longer be related to the market price. The pricing of HOS flats may be reduced from the original market price by 30% to 50%. For green housing, the discount will be more than 10%. Under the new mechanism, the market price is about 42% off.
Under the new mechanism, the maximum income limit for applicants for white-selling houses is $57,000. At that time, Mrs Lam said that as the prices of private housing continued to rise and the number of people who could afford it decreased, more people needed government help. Therefore, they did not intend to change the household income ceiling of the White Form.