Wednesday, June 11, 2008

HungHom Peninsula 紅灣半島 then and now

This was what it looked like in 1994, when it was still called Hunghom Peninsula Private Sector Participation Scheme (PSPS) flats. It was similar to the Home Ownership Scheme (HOS 居者有其屋計劃), both being government-subsidized ownership housing.

Before the face lift, they were expected to sell at about $15,500 per square meter. With a total guaranteed purchase price of $1,914 million, for all 2,470 residential units with a total saleable area of 123,500 square meters.

In November 2002, the Government decided to cease indefinitely the production and sale of HOS/PSPS flats from 2003 onwards, to pop up the market of private residential flats.

In February 2004, the Government agreed to let the developer sell the flats in the open market, after paying a pathetically low premium of $864 million to the Government. In November 2004, the developer announced plans to demolish and redevelop the whole project. After a huge uproar from the community, the developers changed their minds in December and decided to only renovate the project.

Three and a half years, a face lift and a new name (海濱南岸) later, this is what it looks like now. Other than the more shinny colors, it does not look very much different. Given its narrow, angular profile and small windows, it does not look very luxurious. The real difference? The price tag. It is now selling for about $70,000 per square meter.

You go and figure our how much money the developer is making, and who gave them this whale of a gift.

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