Although the government has "removed spicy food" and after implementing the legislation of Article 23 of the Basic Law, the government will go all out to fight for the economy. However, it still takes some time to digest the impact of the decline in property prices. One of the most affected sectors is that the discount rate of subsidized housing has narrowed significantly due to the impact of falling property prices. In contrast, as the price reduction war for new projects continues, As a result, the cost-effectiveness of subsidized housing is no longer so high, especially when compared with second-hand private buildings in the same district, the cost-effectiveness is even worse. If a reader is lucky enough to be lucky enough to buy a subsidized house, should he "get on the bus" or is it more cost-effective to buy a private house?
Data picture (picture source: Jingyi Editorial Department)
In the years when property prices continued to rise, the lucky ones who won subsidized houses in the past were like "winning the Mark Six Lottery". As long as they were willing to buy, they would definitely make money. The only difference was how much they made. There are many examples of people who made millions of dollars in past transactions. yes.
Discount rate may be increased
The discount rate for subsidized housing is based on the market price. If the property price is too high, the discount rate may even be increased. For example, in the past, Home Ownership Scheme flats were generally priced at 30% off the market price. In the early years when property prices were at their peak, the discount rate increased further. However, since the discount rate set by the Housing Authority will not be adjusted "closely" to the market price trend, if the property market fluctuates, the gap between the time of sale and the time when the discount is set will become a "shrinking" discount rate. .
When the discount rate is lower, it means that the subsidized housing is closer to the market price, and the price/performance ratio will decrease. For example, the URA's recent new project in Hung Hom, Tower 3, was launched at a 22% discount on the market price in September 2023. However, today, half a year later, the property price has dropped sharply. When it comes to picking up the property, the actual discount is The rate is only 87% off, which is only a small amount in conversion.
Since subsidized housing has stricter resale restrictions; on the contrary, private housing does not have these restrictions. In this case, it is only slightly cheaper than the market price, which naturally makes people feel that it is not worth buying. As a result, 60 units were sold on the first day of sale. Only 19 people attended the lottery, and 70% of the buyers simply gave up the opportunity to "get on the car". If the URA's price is too high to attract the public, then it is obvious that the sales of new HOS flats are stagnant. In particular, Anderson Road Home Ownership Scheme housing has been on sale for a long time, but almost no one is interested. Of course, location is a factor, but those who are eligible to buy HOS flats did not have many options to choose from in the past. Nowadays, there are more affordable options in the market, which will naturally affect sales.
Although the government recently announced that the temporary discount rate for Home Ownership Scheme housing in 2025 will be 51% off; the Green Home Ownership Scheme will be 41% off, which is the highest discount rate since the re-sale of Home Ownership Scheme housing in 2014. At the end of the day, it still faces the problem of difficulty in selling.
Applying for a mortgage has inherent advantages
Does that mean these subsidized housing with low discount rates are unattractive? Of course not. Since the location of the housing estate, living space, transportation facilities and other factors vary from person to person, I will not go into details. However, subsidized housing still has its advantages when viewed from a mortgage perspective. For example, the Housing Authority's Home Ownership Scheme is guaranteed by the Housing Authority. Since banks are more lenient in mortgage approval than private housing, buyers can almost 100% go through the meeting smoothly. During the process, they don't have to worry about the impact of property market fluctuations on the valuation, and they don't have to "raise money." Go to the meeting or add a guarantor. For homeowners who only want to live there, buying a subsidized house can be said to be the most stable option.
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