Opinion | Developers must answer John Lee’s call for private subsidised housing

The pilot scheme for private developers to build subsidised housing, which comes after New World Development’s proposal, is a chance for more businesses to come forward to fulfil their corporate social responsibility

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Flats under construction, with Lion Rock in the background, on October 11. Photo: Dickson Lee

Terence Chong Tai-leung

Published: 9:15am, 27 Oct 2022Updated: 2:37pm, 27 Oct 2022

Corrected [2:34pm, 27 Oct, 2022]

[2:34pm, 27 Oct, 2022]
An earlier version of this article was attributed to the author Terence Chong rather than Terence Chong Tai-leung.

As the Hong Kong government begins a new chapter in its quest to provide affordable housing, many young families may have cause to be hopeful that their home ownership dreams will soon come true – with a helping hand from the private sector.

This is because Chief Executive John Lee Ka-chiu is launching a pilot scheme on private developer participation in subsidised housing, as announced in his policy address, a decision expected to open the door for up to 4,000 families to buy quality homes at below-market prices, and without the typical long wait caused by red tape.

In his policy blueprint, Lee has rightly highlighted the pressing need to expand the housing market by supplementing with private housing such government efforts as the Home Ownership Scheme, operated by the Housing Authority, to meet the public’s home ownership aspirations.

The pilot scheme – which involves the government putting up three sites for tender to build subsidised housing and opportunities for property developers to rezone their private land for subsidised housing projects – is a much-appreciated gesture in enhancing public-private partnership to shore up the shortfall in subsidised flats.

Of particular significance is the official openness towards giving property developers more freedom in making mortgage and sale arrangements. This comes after New World Development proposed Hong Kong’s first not-for-profit privately subsidised housing project under its social enterprise unit, New World Build for Good.

Under this innovative proposal, those eligible for public subsidised housing can buy New World flats through a special financial arrangement, benefiting from ultra-low down payments and flexible instalments spread over decades.