Sandwich-class housing eligible for private sales after 16 years
Private sales of the proposed sandwich-class housing units will not be permitted within 16 years of the initial purchase, after which a land premium payment will apply.
The Executive Council (ExCo) has recently concluded its discussion on the proposed sandwich-class housing bill and held a press conference to announce further details.
The ExCo highlighted that a blackout or lock-up period of up to 16 years from the date of initial purchase will operate to prohibit the transfer of apartments. The length and conditions of the blackout period will be similar to those that apply to economic housing.
After the blackout period, owners who wish to dispose of their flats may either sell them back to the Housing Bureau (IH) or to private buyers.
It was also proposed that sandwich-class housing units may only be sold to permanent residents of Macau.
IH president Arnaldo Ernesto dos Santos explained that sandwich-class housing units will be priced at about 60% to 70% of the average price of private property within that neighborhood.
The value of the land premium payment will be the difference between the average price of private housing and the price of each sandwich housing unit. For example, if the government offered a 30% discount on the sale of a particular unit, the owner will need to pay the government 30% of the apartment’s resale price as land premium.
Land premium is a one-off payment, meaning that subsequent sellers will not be subject to it.
The pricing of sandwich-class housing units is proposed to be determined by the Chief Executive.
The proposal to allow sandwich-class housing units to be sold to private buyers differs from the provision of economic housing units, which states that the latter can only be sold back to the IH at their original purchase value.
Another difference in the criteria for economic housing relates to income range. Santos disclosed that the proposed income floor and ceiling will be 50% of and 10% higher than the income ceiling for economic housing.
Regarding other proposed eligibility criteria, a household applicant should be represented by a Macau permanent resident aged at least 18 years, or 23 years for individual applicants. Those who have bought any type of property within 10 years of making an application will be ineligible. Those who have previously had sandwich-class or economic housing units, or accessed a 4% mortgage interest subsidy, will also not be eligible.
He disclosed that once the Bill passes parliament, IH can immediately commence constructing the first housing estate. The bureau has selected land on Avenida Wai Long and opposite the southern tip of the Macau International Airport for the development. The suitability of the land for housing has been criticized, given its proximity to the trash incinerator and the airport.
The bill also includes provisions to punish false declarants.
