HK$135,000 downpayment for NT West homes

New World Development on Monday said it was planning to sell 300 flats at half of their market price to eligible first-time homebuyers in view of the city’s housing problem.

The developer said downpayment for the units on offer in New Territories West will be as low as 5 per cent of their value, and special mortgage arrangements would be offered.

For a 300-square-foot unit, for example, the developer said the estimated cost would be HK$2.7 million. The homebuyer will have to pay a downpayment of HK$135,000, and the mortgage will then be split into two phases.

The buyer will draw a loan at 45 percent of the flat price to be repaid up to 30 years – for a monthly instalment of HK$5,010 – while the remaining 50 percent can be repaid over a period of 10 years in one or a number of instalments.

New World Development described it as Hong Kong’s first subsidised private housing project.

Pending the government’s approval, the developer said the monthly income limits for eligible individuals and families would be set at HK$33,000 and HK$66,000 respectively.

It said priority would be given to people aged between 25 and 45.

The Transport and Housing Bureau welcomes the proposal. A spokesman said the government will be in contact with the developer to learn more about the scheme.

He said if implemented, the proposal could boost the supply of subsidised flats and provide an additional choice for prospective homebuyers.