Youth housing benefits conglomerates? Day Sheng Sheng: Too heavy a claim

Politicians recently criticized the youth social housing policy, saying that only 30% of the units are better than market price and even that it benefits conglomerates. Day Sheng Sheng issued a statement saying that all bidding processes were legal, and that Day Sheng Sheng must invest a large amount in construction costs, so saying it benefits conglomerates is too heavy a claim.

Day Sheng Sheng pointed out that its wholly owned subsidiary, "Ri Xiang Leasing and Development Co., Ltd.", was selected in 2012 as the best bidder for the New Taipei City youth housing BOT project, and on May 15 of this year completed the signing of the "New Taipei City Youth Housing Construction, Operation and Transfer Project" with the New Taipei City Government. The entire process complied with bidding procedures, and the future construction process must also be handled in accordance with the contract and relevant laws and regulations such as the Act for Promotion of Private Participation in Infrastructure Projects, and will be supervised by all sectors under the principle of transparency and openness.

Day Sheng Sheng pointed out that a housing policy of rent-only, no-sale has gradually become a global trend and government policy. Day Sheng Sheng's participation in building youth housing requires a large investment in construction costs, and the payback period is very long. It will also have to bear the heavy long-term responsibilities of maintaining rental quality, repairs, and community management. Whether it can earn a reasonable profit in the future will still depend on whether it can be rented out smoothly and collect rent. The outside claim that it benefits conglomerates is truly a heavy accusation.

The government has had similar social housing investment invitation cases in the past, which were ultimately urgently halted because of poor public perception of social housing and backlash and protests from nearby residents. Day Sheng Sheng said that the youth social housing policy has finally been able to move forward only through the efforts of all parties and with a more mature social climate, finally taking the first step toward bearing fruit for social housing policy, and it hopes all sectors will stick to the facts and avoid misunderstandings.

Day Sheng Sheng emphasized that the youth housing case is no different from a general private participation case. Among the government's current development projects to revitalize assets, aside from achieving the fiscal benefit of requiring no government funding, they also carry the public welfare aspect of housing policy. It hopes all sectors will encourage and support this, and not distort the policy as benefiting conglomerates. Otherwise, it will not only kill private investors' willingness to invest, but also fail to care for disadvantaged groups in society.