43 “Starter Homes” units at URA’s eResidence open for application starting 10 November

The Urban Renewal Authority (URA) announces today (9 November 2020) that a total of 43 remaining units in eResidence are designated as “Starter Homes” (SH) units and open to eligible persons for application starting from 10 November 2020 till 7pm on 23 November 2020.  These 43 units are the remaining units in eResidence after the sale of the 450 units under the SH Pilot Project in 2019.   

In accordance with the Residential Properties (First-hand Sales) Ordinance, the URA uploaded the updated sales brochure on 5 November 2020 and published the price list today on the eResidence website (www.eresidence.hk) and the Sales of First-hand Residential Properties Electronic Platform (www.srpe.gov.hk).

In response to the 2019 Policy Address made by the Chief Executive on the new initiatives on housing, the URA allocated part of the residential units from its redevelopment projects and assigned them as SH units.  The Board of the URA has earlier approved that, the remaining 43 units will also be designated as SH units for sale to eligible applicants.

Earlier in October, the URA appointed an independent surveyor to assess the market values (Assessed Market Values) for setting the discounted selling prices of the 43 SH units.  As approved by the Government, the discounted selling prices are set at 70% of the Assessed Market Values (i.e., a discount rate of 30%), which is 10 percentage points less than the discount rate of 40% for the 2020 Home Ownership Scheme sale exercise. 

With the saleable area ranging from 284 to 574 square feet^[1], the remaining SH units comprise 2 studio, 7 one-bedroom, 5 two-bedroom and 29 three-bedroom units. The selling prices as listed in the price list, after discount, range from HK$3.552 million to HK$7.983 million, with unit prices from HK$12,111 to HK$13,908 per square foot of saleable area^[2].

Taken into consideration the applicants’ income limits, if a 90% mortgage loan from banks under the Mortgage Insurance Programme can be obtained, it is anticipated that under the current selling prices, one-person applicants can afford to buy any of the studio and one-bedroom units, whereas family applicants can afford to buy any of the studio, one-bedroom, two-bedroom and three-bedroom units.  The mortgage terms of individual applicants will be subject to their financial status, as well as the stress test arrangement and final approval results of the banks^[3].

The main eligibility criteria for the 43 SH units include the following^[4]:

• The eligible applicants must be at least 18 years old and must have lived in Hong Kong for at least 7 years on the closing date of application (i.e., 23 November 2020).  His/Her stay in Hong Kong is not subject to any conditions of stay (except the condition on the limit of stay);
• The applicant has never owned in any form or manner, directly or indirectly, any residential properties in Hong Kong;
• For one-person applicants, their monthly income must be between HK$33,001 and HK$42,900; for family applicants, the total monthly income of the applicant and all family member(s) listed in the application form must be between HK$66,001 and HK$85,800;
• The total net asset values of one-person applicants and family applicants with all family member(s) listed in the application form must not exceed HK$1,105,000 and HK$2,210,000 respectively; and
• The applicant and all family members included in the application form have not obtained in the past, and are not enjoying any housing subsidies offered by the Government or other related organisations.  All family members listed in the application form must be the direct family members of the applicant and have all along been living with the applicant prior to the closing date of application.

One-person applicants are only allowed to purchase any of the studio and one-bedroom units available for sale; while family applicants are allowed to purchase any of the studio, one-bedroom, two-bedroom and three-bedroom units.

Besides, any assignment, mortgage, letting, and charge of all SH units will be subject to the provisions in the Land Grant.  Within five years from the date of the first assignment, owners are prohibited from selling or letting their SH unit.  After the first five years, owners can sell or let the SH unit after payment of the premium to the URA.  The premium is calculated by applying the discount rate of the purchase price to the prevailing market value at the time of the assessment of premium.

During the application period, the URA will open the on-site show flats for public viewing from Monday to Friday 10:00am to 5:30pm, and on Saturday and Sunday 12:00pm to 5:30pm (the last booking appointment at 4:30pm).  The show flats will remain open after the end of the application period for applicants’ viewing until 21 December 2020.  Those who are interested to view the show flats are requested to make appointments via the online booking system (www.eresidence.hk) from today onwards.

As social distancing measures are still in force, a series of infection prevention and control measures will be implemented in the show flats.  These measures include accepting public viewing by appointment only, limiting the number of visitors for each viewing session, carrying out temperature checks for all visitors before entry, completing health declaration forms, and wearing of face masks throughout the course of show flat viewing.  The URA will also step up cleansing and disinfection measures at the venue to reduce the risk of spreading the virus.

Application form and application guide for the sale of the remaining SH units can be downloaded from the eResidence website starting from tomorrow (10 November 2020).  Such documents can also be obtained from the following locations:

1. Shop G06, eResidence, 8 Hok Yuen Street, Kowloon;
2. Urban Renewal Resource Centre (URRC) at G/F, 6 Fuk Tsun Street, Tai Kok Tsui;
3. URA Headquarters at 26/F, COSCO Tower, 183 Queen’s Road Central; and
4. Public Enquiry Service Centres at District Offices.

Apart from submitting completed application form online, applicants can also submit the form together with a crossed cheque or cashier’s order for an application fee of HK$250 made payable to “Urban Renewal Authority”, by mail to “Starter Homes Pilot Project for Hong Kong Residents” Applications Processing Section, G.P.O. Box 9034, Hong Kong.  Applicants can also submit the form in person at Shop G06 of eResidence or the URRC.

The URA reminds all applicants to read the application guide for the URA’s SH Pilot Project before completing the application form. The enquiry service hotline at 2363 2283 operates from Monday to Friday (9 am to 6 pm) and on Saturday (9 am to 12:30 pm), starting today.

The URA has commissioned the Hong Kong Housing Society to handle all applications and their eligibility vetting.  A computer balloting is planned to be conducted in December 2020 to determine the priority numbers of eligible applicants, who will be invited, in accordance with the priority numbers, for flat selection, to be arranged before the end of January 2021.  Exact dates will be announced in the Information on Sales Arrangements to be issued by the URA later.

^[1] The saleable area of each residential property and the floor area of the balcony, utility platform, or verandah (if any) are calculated in accordance with section 8 of the Residential Properties (First-hand Sales) Ordinance.  The area of other specified items (not included in the saleable area) is calculated in accordance with Part 2 of Schedule 2 to the Residential Properties (First-hand Sales) Ordinance.  Please refer to the sales brochure for details.