Editorial | Lessons to be learned from failed tender for subsidised Hong Kong flats
- Site the latest to be held back by Hong Kong government after sole bid did not meet reserve price amid weak property market
Tapping into market forces can be a win-win for public projects, except when the market itself is also struggling.
This appears to be the case with a failed tender under a revised housing scheme allowing private developers to build and sell homes at discounted prices to eligible buyers.
The failure speaks volumes about the challenges faced in tackling Hong Kong’s housing crunch.
As part of policy address proposals by Chief Executive John Lee Ka-chiu to encourage developers to build subsidised flats, the Chai Wan site is the latest to be held back by the government after the sole bid failed to meet the reserve price.
The outcome is not surprising, given the weak property market has already resulted in several failed land tenders over the past two years.
Reaction has been mixed since Lee sought to revive the private subsidised housing scheme with revised criteria in 2022.
While officials are to be commended for exhausting different options to enhance the affordable supply of homes, it appears to be little more than old wine in a new bottle. In any case, the output – no fewer than 2,300 units in three plots under the pilot scheme – is limited.
