Developers To Benefit From Welfare Plan: Edwin Lee

Retail investor Edwin Lee says the government’s plan to spend HK$20 billion dollars on 60 properties for welfare services will inevitably help major developers.

Speaking at RTHK’s City Forum, the founder of Shop Investments Asset Management Company, said social facilities need to be easily accessible with a large space, which means the government will probably have to buy properties from major developers.

Critics say the plan that a government may push up property prices, and Lee said injecting this much money into the retail market will boost sentiment:

Earlier, the Welfare Secretary Law Chi-kwong defended the proposal, saying there's nothing new about government buying properties to accommodate welfare facilities, citing the purchase of 63 properties between 1995 and 1998.

Law also said renting is not a long-term option, given that uncertainty over lease renewals may affect the operations of welfare organisations and their users.