Hong Kong govt to launch cheap “starter homes” – at RM6,943 psf

PETALING JAYA (Dec 19): Hong Kong's government will be launching cheap “starter” homes in Kowloon that will be priced at about 38% below average market prices – at HK$13,000 (RM6,943.26) psf – in a bid to promote first-time homeownership, reported Bloomberg.

Citing the Hong Kong Economic Journal, anonymous sources told the publication that applications for these homes will open in January.

Those eligible to apply for the 450 starter homes include single permanent residents earning up to HK$37,000 a month who do not own homes yet.

There is also restrictions on reselling the units.

Jones Lang LaSalle Inc head of research Denis Ma said this scheme will “ accommodate a very small portion of those wanting to get on the housing ladder”.

This follows another affordable homes scheme earlier this year, where 4,431 units of affordable apartments received over 260,000 applications.

Meanwhile, home ownership fell to its lowest level in almost 30 years.

Except for a dip in the past four months, Hong Kong's home prices have risen by almost 50% from five years ago, said Centaline Property Agency.