'Subsidised Flats Next To Private Ones A Bad Idea'

The chairman of the Housing Society, Marco Wu, said on Thursday that if public-private partnerships are going to be used to build new flats in Hong Kong, then subsidised units should not be put in the same building as private ones, as this could drag down the latter's value.

Finding new land for flats using a public-private partnership model is one of the ideas up for discussion in a public consultation on how to tackle Hong Kong's housing shortage. Experts say it could free up a thousand hectares of farmland for housing, but critics worry there would be collusion between the government and developers.

Wu told RTHK that he backs the idea and his organisation would be willing to help out.

In light of the collusion fears, he said Hong Kong could proceed cautiously at first, setting down the rules for such partnerships via one or two pilot projects.

Wu also said the government could follow overseas examples and require developers to hand over some entire blocks they build, so they can be used for subsidised flats.

Mixing subsidised and privates flats together in the same building isn't a good idea, he warned. Not only would that create management problems, but it may bring down the value of the private flats.

He also said the Housing Society is still looking into whether it is a good idea to build flats on the edges of the Tai Lam and Ma on Shan country parks. But even if it is feasible, there would be consultations and statutory procedures to follow, he said, so that is one suggestion that isn't going to solve the city's housing woes any time soon.