Prospective gov’t housing buyers complain unreasonable pricing scheme

A group of 135 households yesterday submitted their petition to Chief Executive Ho Iat Seng asking him to reconsider the new Economic Housing pricing scheme.

The group of prospective buyers was escorted by lawmaker Ron Lam.

Ma, a signatory present at yesterday’s submission is in the queue for the Economic Housing applications in 2019.

He complained the current prices are too expensive.

He said that under the old Economic Housing Law, the average price-per-square-foot was MOP1,900, but the current prices have reached MOP3,300 per square foot.

He wonders what has caused the 70% hike.

“I don’t believe this could happen even in the private property market,” he said. “Not even One Grantai is selling at this average price.”

Ma also said the current price list is the result of a 70% government subsidy being injected.

Should the subsidy be eliminated, he said, the price may soar to over MOP10,000 per square foot, “which is not seen in today’s Macau.”

Two other prospective buyers, Fong and Cheong, who were also present yesterday, complained that they did not expect such expensive pricing after so many years of waiting.

Both said that had they known earlier, they would have bought properties in the private market, “instead of having spent so much rental for so many years.”

With her husband currently unemployed, Fong said her household is currently financially ineligible and has, consequently, been disqualified.

Meanwhile, Cheong said that with her husband being the only person working in the household, the pricing for the developments on New Urban Zone A is unaffordable for them. However, she provided “options” for the government.

“I don’t mind buying one of those 411 unsold units in previous applications,” she said.

Previous Economic Housing units are located closer on the Peninsula, which many now consider more convenient.

Asked if the new pricing had affected his incentive to purchase a unit, Ma said it is not about incentive, but about affordability.

Disclosing that he is currently unemployed, he needs to recalculate his financial plans. On the other hand, banks will also have concerns over this ability to repay mortgage loans.

Ho said during his parliamentary question session last November that the current pricing scheme “has legal foundations” and has taken into account “land premiums and construction costs,” indicating it is unlikely the scheme will be changed.

Lam said these prospective buyers applied in 2019, which operates under the old law.

Nonetheless, he questioned whether the 70% difference in the average prices under the old and the new laws was reasonable.

He also said a Bill – proposed to allow the government to build Economic Housing without land concession procedures – has already passed its first reading at the parliament.

“If there is no land concession, why will there be land premiums?” Lam asked, suggesting that counting land premiums in the pricing scheme is unreasonable.