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Hong Kong Housing Society deficit balloons to HK$1.8 billion as ‘challenging operating and investment environment’ takes toll
- Society says it has had to write off costs for several projects for subsidised flats due to a drop in property prices
- But CEO says body is in a ‘healthy financial position’ with net assets valued at HK$46.9 billion as of March
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Annual losses at Hong Kong’s second-largest public housing provider have ballooned to HK$1.8 billion with the weak property market affecting its subsidised flat sales, prompting it to tap the private sector to fund future projects.
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The Hong Kong Housing Society revealed on Thursday that its net deficit increased 43 per cent in the 2022-23 financial year compared with the previous 12 months, making it the second loss-making statutory body involved in homebuilding after the Urban Renewal Authority.
The self-financing body’s total income grew 11.3 per cent year on year to HK$1.99 billion for the 12 months ending March 31. But revenue was offset by a 35 per cent jump in expenditure to HK$3.14 billion.
“The primary reason for this increase was the writing-off of costs for several projects under the [subsidised sale flats] scheme due to a drop in property prices,” the society said in its annual report.
There was also an overall investment loss of HK$654.9 million, 9.6 per cent higher than in the previous year.
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Chief executive officer James Chan Yum-min said in the report the deficit was due to “a challenging operating and investment environment”.
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