2024-05-10 28Hse Editor
The second phase of eResidence, a Hong Kong development for first-time homebuyers, will be accepting applications from September 27 until October 18 at 7pm. The units come from Block Three on Ma Tau Wai Road, To Kwa Wan. With an application fee of HK$270, successful applicants can choose a flat next March.
The new block provides 260 units, including 125 one-bedroom units, 108 two-bedroom units, and 27 three-bedroom units. The units range from 303 to 600 square feet in size, and the project is equipped with clubhouse facilities and 18 residential car parking spaces. The entire development will be completed in November 30, 2026.
The Urban Renewal Authority (URA) commissioned an independent surveyor to assess the market value of the flats, taking into account market conditions, the prices of flats in Towers One and Two, the applicants' affordability, and the URA's financial position. The new flats will be sold at a discount of 78% to the market price.
After the discount, the flats will be sold at prices ranging from about HK$4 million to HK$9.6 million, at an average discounted price of HK$12,885 to HK$16,499 per square foot. Similar to previous subsidised housing projects, eResidence flats are also subject to a resale restriction, whereby owners are not permitted to sell or rent out their flats for the first five years of purchase, and may sell or rent out their flats in the open market, subject to the payment of a premium to the URA, after five years. Owners may sell or rent their flats in the open market after the five-year period by paying a premium to the URA.
Interested applicants should note the following information: the applicant should have reached the age of 18 and have resided in Hong Kong for seven years by the closing date of application; the applicant and the family members listed in the application form have never owned any residential property in Hong Kong in any form, either directly or indirectly, and have not been, and are not currently, in receipt of housing subsidies provided by the Government or other relevant organisations.
As for income and asset limits, the income of a one-person applicant should not be less than HK$31,001 per month and not more than HK$40,300 per month; the total income of a family applicant should not be less than HK$62,001 per month and not more than HK$80,600 per month; the total net asset value of a one-person applicant should not be more than HK$956,000; and that of a family applicant should not be more than HK$1.9 million.
The URA will process the information provided by the applicants between September and October. It is expected that a computerised sorting process will be conducted at the end of November to determine the priority numbers of all applicants, and it is expected that applicants will be invited to meet with the URA in December for detailed vetting of their applications and to invite eligible applicants to make flat selection in accordance with the order of priority.
It is worth noting that one-person applicants can only choose a one-bedroom flat, while family applicants can choose a one- to three-bedroom flat. Therefore, if the majority of families choose one-room flats, there is a chance that one-person applicants will not be able to choose a flat even if they are selected.
In the midst of the market downturn, there has been much discussion concerning the project’s affordability. eResidence attempted to draw buyers by attempting to sell flats at 78% to the market price. However, compared to recent price discounts of new and second-hand homes, eResidence’s opening prices for its second phase may be too high.
In addition, the project's long construction period means that buyers will have to wait before they can move in. During the waiting period, they may have to rent a flat to meet their housing needs, which will incur rental costs. eResidence’s resale restrictions may also affect its market attractiveness.
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