First Starter Homes Project Attracts Thousands

Hong Kong’s first subsidised housing for the middle class has attracted an overwhelming response, with the oversubscription rate hitting more than 35 times, even before the deadline on Wednesday night.

The Urban Renewal Authority (URA) has so far received about 16,000 applications for the 450 flats under the "e Residence" project in Hung Hom.

The flats, under the "Starter Homes" project, are earmarked for first-time buyers whose higher income make them ineligible for the Home Ownership Scheme, but cannot afford private housing due to soaring property prices.

The Democratic Party chairman Wu Chi-wai, who’s also a non-executive director of the URA, said the keen demand shows the Starter Homes scheme should continue.

"In order to provide the URA with a more public interest mission to do the redevelopment work, I believe that it’s a good move that the government assigns the URA to be one of the major partners to operate the Starter Homes scheme," he said.

Wu told RTHK's Wendy Wong that government should more financial support to the URA.

Another non-executive director, lawmaker Alice Mak from the Federation of Trade Unions, said the government should consider providing assistance to the URA if it decides the body should introduce other starter home projects in the future.

The URA has said the flats will cost between HK$3.1 million and HK$6.6 million – or around 62 percent of the market price. The sizes range from 261 to 507 square feet.