260 “Starter Homes” Units at the URA’s eResidence Tower 3 Open for Application from Tomorrow

The Urban Renewal Authority (URA) will accept applications for the 260 units at eResidence Tower 3, a Starter Homes (SH) Project for Hong Kong Residents, starting from tomorrow (27 September 2023) until 7 pm on 18 October 2023.  

In response to the Government’s housing initiative, eResidence has been assigned as an SH project, in which the units were sold at discounted prices to cater for the needs of first-time home buyers.  Following the completion of eResidence Towers 1 and 2,  an adjacent URA redevelopment project at Chun Tin Street / Sung Chi Street in Hung Hom is designated as eResidence Tower 3 and will integrate to the completed towers to form a cohesive community.  Among the 260 SH units in eResidence Tower 3, a flat mix comprising 125 one-bedroom, 108 two-bedroom and 27 three-bedroom units will be offered, with a saleable floor area from 303 to 600 square feet [1].  Also available are ancillary facilities, such as 18 resident parking spaces and a residents’ clubhouse.  

The URA appointed an independent surveyor earlier to assess the market value (Assessed Market Value) of the SH units.  Taking into account the latest situation of  the property market, the original selling prices of the SH units in Towers 1 and 2, the affordability of the units for applicants and the financial position of the URA, the 260 SH units in eResidence Tower 3 are priced at 78% of the Assessed Market Value (i.e., a discount rate of 22%).  The discount rate and selling prices, which were approved by the Government, will range from HK$4.082 million to HK$9.642 million, with saleable floor area per square foot range from HK$12,885 to HK$16,499[2];

Considering the income and asset limits of the eligibility criteria for the SH units, one-person applicants are eligible to purchase any of the one-bedroom units available at the time of flat selection, whereas family applicants[3]  may choose from any of the one-, two- and three-bedroom units.  Formulated and approved by the Government, the key eligibility criteria[4]  for the SH units are as follows:

• The applicant must be at least 18 years old and must have lived in Hong Kong for at least seven years as at the closing date of application (i.e. 18 October 2023), without being subject to any conditions of stay (except for the conditions concerning the limit of stay);
• The applicant and all family member(s) listed in the application form have never owned in any form or manner, directly or indirectly, any residential property in Hong Kong, and did not obtain and are not enjoying any housing subsidies from the Government or related organisations. In addition, the family member(s) must be directly related to the applicant and must have all along been living with the applicant prior to the closing date for applications;
• For one-person applicants, their total monthly income must be no less than HK$31,001 but not exceeding HK$40,300; for family applicants, the total monthly income of the applicant and all family member(s) listed in the application form must not be less than HK$62,001 and must not exceed HK$80,600; and
• The total net asset value of one-person applicants must not exceed HK$956,000, and that of family applicants, including all family member(s) listed in the application form, must not exceed HK$1,911,000.

Furthermore, any assignment, mortgage, letting and charge of the SH units must adhere to the provisions of the Land Grant, according to which, owners are prohibited from selling or letting their SH units within five years from the date of the first assignment.  After this five-year period, the owners can sell or let their SH units in the open market only after paying a premium to the URA.  The premium to be charged is calculated by applying the discount rate of the original purchase price, determined at the time the Provisional Agreement for Sale and Purchase was signed, to the current market value of the flat. The premium represents the difference between the full market value of the flat and its discounted value at the time of the premium assessment.

HKMC Insurance Limited (HKMCI) will provide mortgage insurance for the SH units at eResidence Tower 3, enabling SH unit buyers to apply for a mortgage loan with a loan-to-value ratio of up to 90%.  As mortgage loan arrangements for individual applicants depend on property market conditions, as well as the valuation of the unit and the terms and conditions approved by the bank and the HKMCI at the time of mortgage application, applicants of the SH units are advised to be mindful of their affordability and prudently consider and manage the risk incurred when purchasing a unit.[5]

The URA has set up a sales office and show flats on the first floor of “The Harmonie” at 233 Castle Peak Road, Cheung Sha Wan for public viewing.  It will open Monday to Sunday (10 am to 7 pm) during the application period from tomorrow (27 September 2023) to 18 October 2023.  Interested individuals can make an appointment online through the eResidence Tower 3 website (www.eresidencet3.hk), starting today (26 September 2023) while walk-ins are also welcome.   

In accordance with the Residential Properties (First-hand Sales) Ordinance, the URA uploaded the sales brochure and price list to the eResidence Tower 3 website and the Sales of First-hand Residential Properties Electronic Platform (http://www.srpe.gov.hk) today for public access.

The Application form and Application Guide for the SH units can be downloaded from the eResidence Tower 3 website.  Hardcopies are also available at the following locations during the respective office hours:

(i) 1/F, The Harmonie, 233 Castle Peak Road, Cheung Sha Wan, Kowloon;

(ii) URA Headquarters: 26/F, COSCO Tower, 183 Queen’s Road Central, Hong Kong; and

(iii)  Home Affairs Enquiry Centres under the Home Affairs Department.

Members of the public can call the hotline during the office hours at 3897 3533 for more details about the applications.

Applicants who are interested in purchasing a unit in eResidence Tower 3 can submit their applications via one of the following methods during the application period:

1. Online Application
   Submit the application and pay the application fee of HK$270 with a credit card through the eResidence Tower 3 website; or
    
2. By Mail or In Person
   Submit the completed application form, together with the application fee of HK$270 (paid by crossed cheque or cashier’s order and made payable to the “URBAN RENEWAL AUTHORITY”) by mail to G.P.O. Box 9034, Hong Kong, postmarked on or before 18 October 2023, indicating “Application for Urban Renewal Authority Starter Homes Project for Hong Kong Residents” on the cover of the envelope; or by placing them in the collection box for application forms at 1/F, The Harmonie, 233 Castle Peak Road, Cheung Sha Wan, Kowloon.

Applicants are reminded to carefully read the Application Guide for the SH project in advance, and are encouraged to submit their applications and pay the application fee online via the eResidence Tower 3 website for convenience.  

The URA will collect the applications, vet the eligibility of the applicants, and arrange flat selection.  The application data will be received and processed in September and October 2023, followed by a random assignment of the priority number for the applicants by computer, which is scheduled for the end of November 2023.  Interviews will be arranged for the applicants to carry out the eligibility vetting process starting in mid-December.  Eligible applicants will then proceed to flat selection in March 2024 in accordance with the order of their priority numbers.  Depending on the number of applications and processing progress, the exact dates of flat selection will be announced by the URA in the Sales Arrangements in due course.

(Ends)

To the extent that this press release constitutes an advertisement, this notice shall apply.

Name of the Development: eResidence Tower 3

Street Name and Street Number of the Development: 2 Hok Yuen Street*

District: Hung Hom

The address of the website designated by the Vendor for the Development#: www.eresidencet3.hk

The photographs, images, drawings or sketches shown in this advertisement/promotional material represent an artist’s impression of the development concerned only.  They are not drawn to scale and/or may have been edited and processed with computerized imaging techniques.  Prospective purchasers should make reference to the sales brochure for details of the development.  The vendor also advises prospective purchasers to conduct an on-site visit for a better understanding of the development site, its surrounding environment and the public facilities nearby.

Vendor: Urban Renewal Authority | Holding Company of the Vendor: Not applicable | Authorized Person for the Development: Ms. Chan Wan Ming | The firm or corporation of which the Authorized Person for the Development is a proprietor, director or employee in his or her professional capacity : P&T Architects Limited | Building contractor for the Development: Build King Construction Limited | The firm of solicitors acting for the owner in relation to the sale of residential properties in the Development: Mayer Brown | Authorized institution that has made a loan, or has undertaken to provide finance, for the construction of the Development: Not applicable | Other person who has made a loan for the construction of the Development: Not applicable | To the best of the Vendor's knowledge, the estimated material date for the Development is 30 November 2026. (“Material date” means the date on which the conditions of the land grant are complied with in respect of the Development. The estimated material date is subject to any extension of time that is permitted under the Agreement for Sale and Purchase.) | *The above provisional street number is subject to confirmation when the Development is completed. | #The address of the website designated by the Vendor for the Development for the purposes of Part 2 of the Residential Properties (First-hand Sales) Ordinance. | The prospective purchaser is advised to refer to the sales brochure for any information on the Development. This advertisement is published by the Vendor or with the consent of the Vendor. This advertisement does not constitute and shall not be construed as constituting any offer, representation, undertaking or warranty, whether express or implied, given by the Vendor.

Date of printing: 26 September 2023