Hong Kong’s social experiment with rent-for-life flats for the elderly gets under way with the start of application for the first batch of units.
Applications will be accepted until Dec. 22 for the Tanner Hill residential project in North Point, the first non-subsidized housing for people 60 years and above, according to Ming Pao Daily.
Tanner Hill offers 588 flats in three towers, with ocean views on higher floors.
Successful applicants will be drawn by lots and can expect to move in by March.
They can choose to pay a lump sum for lifetime rental, called an entry fee, or pay by installment over one to 10 years.
There are no restrictions on income and assets.
A 2.25 percent interest will be charged for one-year installment and 15.5 percent for 10 years.
The amount each tenant pays during the lease period depends on the size and location of the flat. There are one, two and three-bedroom units ranging from 342 square feet to 1,231 sq. ft.
It will also depend on the tenant’s age and life expectancy, Hong Kong Society chairman Marco Wu said.
That means the entry fee could be as low as HK$1.72 million (US$221,921) or as high as HK$20 million.
Daniel Lau, director of the society’s development and marketing affairs, said a tenant is required to pay a management fee of HK$4.10 per sq. ft., along with a monthly charge of HK$800 per person for healthcare services.
Domestic helpers are allowed to care for tenants as long as they can show a medical certificate from a hospital.
If a tenant terminates the lease, 80 percent of the amount paid will be returned but only if the cancellation is made during the first two years of occupancy.
Reimbursements will decrease every year to 5 percent if the tenant has lived in the unit 10 years or more.
Wu said the entry fee is based on market prices but is significantly lower for people 85 and above.
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