Third starter homes tower draws a lukewarm response

Starter homes put up for sale at eResidence Tower 3 in Hung Hom drew a lukewarm response from buyers but the Urban Renewal Authority said there is no plan to put off the sale.

The URA received 2,270 applications for the 260 flats at the tower, making them 7.7 times oversubscribed as of Saturday.

Managing director Ir Wai Chi-sing said in his blog that the public reacted lukewarmly to the sale compared with the first two towers due to the economic and housing market environment and relatively high interest rates.

The authority had received over 20,000 applications for the first two eResidence Towers, 45 times more than the quota.

But he added that the result "was expected," and the number of applications is expected to increase by Wednesday, the closing deadline.

"I don't think we should postpone the application of the units due to external factors; otherwise, citizens who have been planning to buy starter homes, especially younger applicants who are not eligible to apply for the Home Ownership Scheme and cannot afford private housing flats, could be disappointed."

About 60 percent of the applicants used to apply for other subsidized sale flats, according to the application data. "We can say that there are still many young families who cannot afford to have an independent house, and SSFs became their only chance to own a flat," he said.

The data also showed that the starter home project, which offers flats to first-time buyers who don't qualify for other kinds of subsidized housing but can't afford to buy private flats, appeals to singles and younger families.

Nearly 90 percent of the applicants were under 40, among which 70 percent were one-person applicants while others were mostly two-person families.

Also, 1,000 applicants had never applied for other subsidized sale flats before.

About half the first-time applicants were under 30.

The eResidence Tower 3 provides 125 one-room, 108 two-room, and 27 three-room units with areas of 303 to 600 square feet and features ancillary facilities, such as 18 resident parking spaces and a clubhouse.

The flats were put up for sale at 22 percent off market prices, ranging from HK$ 4.08 million to HK$ 9.64 million.

ayra.wang@singtaonewscorp.com