The Legislative Assembly (AL) yesterday passed a government-initiated bill regulating “sandwich-class” housing projects, according to which an individual applicant wanting to buy a flat must be aged at least 23, while the applicant must be aged at least 18 if he or she applies for a flat with family members.
According to the new law, which will take effect on April 1 next year, sandwich-class housing projects will only cover applicants who are permanent local residents.
The bill’s outline was passed during a plenary session of the legislature in December last year. The legislature’s 3rd Standing Committee held several meetings to review the bill.
Secretary for Transport and Public Works Raimundo do Rosário attended yesterday’s plenary session when the bill was voted on article-by-article in its second and final reading.
Government-built sandwich-class housing projects aim to provide affordable flats for local residents who are not eligible to buy a flat in the government’s subsidised home-ownership scheme (HOS) but cannot afford to buy a flat in the private sector either.
Sandwich-class housing projects, a new type of housing to be developed in the future, also aim to cover those who are eligible to buy an HOS flat but are ranked at a lower priority position on the HOS points-based system, i.e., those having a lesser chance of buying an HOS flat compared to other HOS applicants.
Currently, the government’s public housing programme comprises HOS flats and social rental housing units.
The government’s plan to build housing projects for the city’s “sandwich class” was first proposed by Chief Executive Ho Iat Seng in 2020.
While a sandwich-class flat will be cheaper than its counterpart in the private sector, it will be more expensive than an HOS flat.
The age limits for applicants for sandwich-class flats will be the same as the current age limits for applicants for HOS flats.
According to the new law, a points-based system will be adopted for the allocation of sandwich-class housing units, according to which, applicants will be ranked on a waiting list according to scores calculated based on various factors and variables.
According to the points-based system listed by the new law, once all the available flats in an application round have been allocated, the waiting list will be cancelled and unsuccessful applicants will have to reapply the next time an application round is launched.
The points-based system for the allocation of sandwich-class housing units will be similar to the current points-based system for the allocation of HOS flats.
Minimum & maximum income cap
Like the current system on applications for HOS flats, there will be a minimum income cap and a maximum income cap for sandwich-class housing applicants.
According to the new law, the minimum income cap for sandwich-class housing applicants will be 50 percent of the maximum income cap for HOS applicants, while the maximum income cap for sandwich-class housing applicants will be 10 percent higher than the HOS maximum income cap.
According to the new law, those who had owned a real-estate property over the past 10 years prior to submitting an application will not be eligible to apply for a sandwich-class flat, except if the ownership was obtained through inheritance.
According to the new law, owners of sandwich-class housing units can only sell their flats on the private market at least 16 years after they have bought them from the government.
In addition, sandwich-class housing units can only be sold to permanent local residents.
The government will only launch e-application processes for the allocation of sandwich-class housing units, according to the new law.
The government has indicated that its sandwich-class housing projects “primarily aim” to benefit young people.
According to the new law, the price of a sandwich-class housing unit will be set at a discount rate compared to the cost of private housing units in the same neighbourhood, and the discount rate will be determined by the chief executive through an executive order.
The government is planning to build its first sandwich-class housing project on the plot at the bottom of Big Taipa Hill in Avenida Wai Long, i.e., the plot of the ill-fated La Scala luxury housing project near the airport.
The plot was initially earmarked for an HOS housing project. However, Chief Executive Ho Iat Seng announced in August last year that the government had decided to build a sandwich-class housing project on the plot instead.
