ENG-2018 — Page 234

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Housing

'Starter Homes' Pilot Scheme for Hong Kong Residents

Starter Homes aim to help higher-income families which are not eligible for the HOS and yet cannot afford private-sector housing to fulfil their home ownership aspirations amid rising. property prices. The concept was introduced in the Chief Executive's October 2017 Policy Address, and in June 2018, the government announced testing it out by inviting the Urban Renewal Authority (URA) to assign its redevelopment project at Ma Tau Wai Road as a Starter Home pilot project, providing 450 flats of between 24 sq m (261 sq ft) and 47 sq m (507 sq ft). The URA said in December that the discount would be 38 per cent of assessed market values.

Private-sector Housing

The government monitors the residential market and is alert to the risks of a property bubble. To ensure healthy development of the market, it increases land supply, combats speculative activities, manages demand for residential properties, increases transaction transparency and prevents overexpansion in mortgage lending.

Demand-side management measures are in place to address the overheated market. Special stamp duty, buyer's stamp duty, doubled ad valorem stamp duty and new residential stamp duty aim to curtail speculation, external demand and investment demand, and accord priority to the home ownership needs of Hong Kong permanent residents.

Special Rates on Vacant First-hand Private Residential Units

The government proposes amending the Rating Ordinance to introduce Special Rates on vacant first-hand private residential units. The amendment will require developers of first-hand private residential units with occupation permits issued for 12 months or more to furnish annual returns to the government on the status of these units. First-hand units that have not been rented out for more than six months during the past 12 months will be subject to Special Rates. The Rating and Valuation Department will collect Special Rates annually at 200 per cent the rateable value of the units. The government is preparing the Rating (Amendment) Bill for introduction into the Legislative Council as soon as practicable.

Amending the Consent Scheme

To improve market transparency and consumer protection, the government's amended Consent Scheme requires developers to offer for sale no less than 20 per cent of the total number of flats subject to the relevant presale consent at each turn of sale, regardless of the sales method, including tenders and auctions. If the remaining unsold flats make up less than 20 per cent, the developer has to offer all these flats for sale in one go. The new requirement came into effect on 29 June and applies to both presale consent applications being processed at that time and all new applications received after that date.

Sale of First-hand Residential Properties

The Residential Properties (First-hand Sales) Ordinance and the work of the Sales of First-hand Residential Properties Authority enhance the transparency and fairness of sales in first-hand homes, strengthen consumer protection and provide a level playing field for vendors. In 2018,

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