Gov’t starts consultation to define ‘sandwich class’

Today sees the commencement of the public consultation which will attempt to define the “sandwich class” of population in Macau, an interdepartmental panel told a press conference yesterday.
“Sandwich class” is a term used in Hong Kong to describe the middle-income population. By definition, in the neighboring Special Administrative Region (SAR), this group of people is simultaneously incapable of purchasing privately developed residential units and exceeds the requirement for the “Home Ownership Scheme”, a program similar to Macau’s economic housing. In Hong Kong, the price of “sandwich-class” housing is higher than that of the Home Ownership Scheme units.
Approximately a year after the establishment of the neighboring SAR, the then-Chief Executive Tung Chee Hwa abolished the scheme in the hopes of stabilizing Hong Kong apartment prices. In contrast to Home Ownership Scheme units, owners of “sandwich-class” apartments have to pay a land premium before they can freely sell their apartments.
The proposed Macau program currently in public consultation has many similarities with the abandoned Hong Kong scheme. For example, it is in the middle of a “housing staircase,” a term coined by Chief Executive Ho Iat Seng. On this “staircase”, the “sandwich” type of housing has a ranking below Senior Apartment and above Economic Housing.
The style of the Sandwich-class Housing will be similar to private housing. It is expected to be of higher quality than Economic Housing.
The government is also proposing a land premium prior to reselling such apartments in the market.
The government is making two additional proposals to the definition of the sandwich class. The first proposal is to extend the definition to residents who exceed the requirements of Economic Housing, while not being able to afford private housing. The second, is that it applies to residents who are ranked lower in an Economic Housing application and not able to afford private housing. The former proposed definition is similar to the definition in Hong Kong.
The eligibility of the Sandwich-class Housing is part of the public consultation. The government proposes that either all members of the applicant family cluster must be permanent residents, or over half of the cluster must be permanent residents, while the main applicant is a permanent resident.
Referencing the current Economic Housing Law, the government proposes that an individual applicant must be at least 23 years old and a permanent resident, or a permanent resident who is at least 18 years old when applying as a family cluster.
As for the income floor of an applicant, the government has three proposals; i.e. that the income floor of an applicant must be 20% lower than, 50% lower than, or identical to the income ceiling of Economic Housing.
Regarding the proposed income ceiling, the government proposes that this be set at either 20% higher than or 10% higher than the income ceiling of Economic Housing.
The government proposes that asset ceilings be set at either 20% higher than or identical to that of Economic Housing.
It also proposed that the housing be priced at a fraction of private housing in neighboring districts.
Distinct from the Economic Housing eligibility, the government proposes that an applicant may be a previous apartment owner.
With regards to how the quality of Sandwich-class Housing can be defined, the government is leaving it to public discussions. Members of the public may provide input into the design of such housing.
The proposals made by the government are subject to change after the closure of the public consultation. Members of the public have the opportunity to provide their own proposals to the government in the public consultation.