Hong Kong developer plans to sell 300 homes at 50 per cent

HONG KONG: Hong Kong developer New World Development plans to sell 300 new homes at a discount of around 50 per cent on the market price in the city's first subsidised private housing project.

New World said it would require a down payment of just 5 per cent of the unit price to provide more affordable housing in one of the world's most expensive property markets.

The research project called New World Build for Good is about to be launched in September to address a chronic housing shortage in the city, according to New World.

It may be a small first step but we hope to encourage other Hong Kong corporations to join us in creating similar projects and giving back to the community, according to Adrian Cheng, New World Development CEO.

New World would build 300 one- to three-bedroom flats ranging from 300 to 550 sq ft in the New Territories West district after the proposal was approved by the government.

The estimated cost of each unit would be roughly HK $2.7 million US $346,287 to HK $4.95 million and priority would be given to Hong Kong residents aged 25 and 45 who are first-time homebuyers.

Since the former British colony returned to Chinese rule in 1997, housing affordability has been a priority for Hong Kong's leaders, although the prospect of owning a home is a distant dream for many.

Beijing blamed the conglomerates' monopolistic behaviour for the city's housing woes, which it believes played a big role in stirring discontent with the government and fuelling protests in the year 2019.