Govt to revise Private Subsidised Sale Flat Scheme

Secretary for housing Winnie Ho on Saturday said the government will look into ways to revise a pilot scheme that lets developers take on the role of building subsidised housing flats. It comes after the administration had rejected a tender for a residential site in Chai Wan earlier this week, after only one bid was received and it failed to meet the reserve price. The Cheung Man Road site is earmarked for at least 700 units with the government setting the price at 65 percent of the market value - with any unsold units to be kept by the developer to sell. Speaking on a Commercial Radio programme, the housing minister said the administration is open to suggestions from the industry. "The interest rate wasn't lowered as expected so developers feel it's very difficult after doing their calculations. For other terms and conditions our industry friends and professional associations can give us some advice. We will take them as a reference. We have other land to choose from, such as different locations, ground area, or unit numbers. That might make a difference. Give us some time to study this," she said. The government is tendering three sites for development under its Private Subsidised Sale Flat Pilot Scheme, which was announced last year to boost supply of subsidised homes by working with private developers.