Give Hong Kong private developers more incentives to join subsidised housing scheme: analysts

Experts also urge authorities to restore market confidence following failed first land bid under Private Subsidised Sale Flat Pilot Scheme

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Analysts have also urged authorities to bolster confidence in the property market. Photo: Yik Yeung-man

Published: 12:18pm, 25 Jul 2024Updated: 7:25pm, 25 Jul 2024

Hong Kong authorities should restore confidence in the property market and offer more incentives to private developers to encourage them to join a pilot scheme for building subsidised homes amid an underperforming economy, analysts have said.

The experts made the suggestions after housing minister Winnie Ho Wing-yin earlier on Thursday sought to reassure the public that the supply of such homes would be unaffected by the failure of the first land bid under the Private Subsidised Sale Flat Pilot Scheme.

Andy Kwan Cheuk-chiu, director of the ACE Centre for Business and Economic Research, said it was important to stabilise property prices to reduce developers’ business concerns, freeing them up to build subsidised homes.

“Their response towards bidding for land for private flats has been lukewarm. They will not bother to bid and build subsidised flats for the government since it will bring them little revenue,” the economist said.

“They will only be interested when the property market is stable.”

Kwan said the government could manage market expectations by reducing the private housing supply over the coming few years, giving developers a chance to sell their stock of unsold properties.