Task force to look into cutting construction costs for Hong Kong public flats

Housing authorities will set up a task force to look into cutting costs for building public rental flats, including design, materials and procedures, with the outlay for each home rising by 5.4 per cent to nearly HK$1 million (US$128,205) while Hong Kong faces a massive deficit.

In a move welcomed by industry professionals, the Housing Bureau will establish a task force led by a director-grade official to see if there is room to squeeze the construction costs of various works. The Development Bureau earlier told the Post that it was conducting a study to devise ways to bring down costs.

Authorities revealed in January that the cost of building a public flat had risen from HK$920,000 last year to HK$970,000. The cost of building subsidised flats offered under the Home Ownership Scheme also rose from HK$1.09 million to HK$1.15 million, sparking public concern.

“We will review how direct procurement and adjustments to the processes can save us manpower and costs,” a government source said.

Secretary for Housing Winnie Ho Wing-yin said on Monday that the second generation of “modular integrated construction” (MiC) was cheaper now than when the government first adopted the technique.

The MiC method employs free-standing, integrated modules from mainland Chinese factories that undergo quality inspections before being installed on-site.