The low-cost “modern housing” program proposed by the Council for Economic Planning and Development (CEPD) would help low-income families buy a 20 ping (66.1m2) home in New Taipei City (新北市) for as little as NT$2.5 million (US$86,610), a council official said.
The official said the council had sent the proposal to the Executive Yuan last week, adding that he expected the Cabinet to review the proposal and come to a conclusion by the end of this month.
The CEPD’s “modern housing” program targets low-cost housing projects that would be constructed by the private sector on government-owned land. The government may provide leasing rights for up to 70 years for developers that win bids for these projects.
“We set up four models with differing prices for houses for the Cabinet to review. Potential homebuyers could pay between NT$2.5 million and NT$3.36 million to get a 20 ping home close to an MRT station,” a council official said on condition of anonymity.
Royalty fees that contractors would pay the government would be the factor influencing the prices for low-cost housing, the official said.
The official took the lowest model for example, saying that if the government did not impose any royalty fees, contractors would build housing at low costs, cutting the price of a 20 ping home to between NT$2.5 million and NT$3 million. If the government imposes a 10 to 50 percent royalty fee, a 20-ping home might cost up to NT$3.36 million, the official said.
However, potential homebuyers will not be subject to the goverment’s beneficial mortgage plans, the official said.