Land premiums unlikely to come down under Starter Homes scheme, Hong Kong leader Carrie Lam says
Chief Executive Carrie Lam Cheng Yuet-ngor said she would try to find other ways to encourage developers to join scheme
Hong Kong’s leader has poured cold water over suggestions that the government lower land premiums for developers taking part in its new housing initiative for young, middle-income families.
Against the backdrop of an overheated property market, Chief Executive Carrie Lam Cheng Yuet-ngor said at a business forum on Tuesday that housing is an “extremely complicated and difficult issue” the government is dealing with.
She was asked whether the government would consider lowering the land premium for developers joining the government’s Starter Homes scheme.
Will Hong Kong’s Starter Homes scheme help young families get on property ladder or fatten the pockets of developers?
Under the scheme, buyers who meet certain criteria – for example, a family of two or more making no more than HK$68,000 a month – would qualify to buy flats built by private developers but with the government ensuring that prices are affordable.
“I would be very hesitant to attract developers to join the scheme by offering lower premiums. We will have to find other means to ensure that this type of cooperation … will be a win-win,” she said.
She did not explain how the government would encourage developers to take part in the scheme, saying only that it would “unlikely” be done through lowering the premiums.
Land premiums are payments developers make to the government if they wish to change the use of their land.
