Sir,
SPEECH BY HON. HILTON CHEONG-LEEN, OBE, JP
LEGISLATIVE COUNCIL - 18.7.29
Adjournment Debate
Home Ownership For Middle-Income Hong Kong Belongers
There is much concern at the sharp increases within the past 12 months of both rentals and selling prices of mdium and large flats, which have risen by between 50% to
150%.
According to the "Froperty Review 1979", out of a total of 65,255 private and public domestic units expected to be built in 1979, there will only be 1,160 medium and 355 large flats.
The 1980 forecast is even more dismal. Of a totel
of 66,705 units, only 615 will be medium and 350 will be
large flats.
Medium flats are between 1,000 - 1,700 square feet of covered area, and large flats are over 1,700 square feet.
One of the reasons for this eharp demand for medium and large flats is that with the opening up of China and the licensing of more banks, newly arrived expatriate personnel have to find quickly and pay top prices for accommodation.
A second reason is that money from countries in the Far East has been coming into Hong Kong for investment, speculative or otherwise, in the real estate field.
A third reason is that Government itself does not
have an adequate building programme for medium and large flats for Civil Servants entitled to such accommodation. By competing with the private sector, Government is helping to force rentals up and to fuel inflation. Government thinks that ultimately it will gain by selling land at inflated prices.
Fourthly, there is currently more speculation in the acquiring of medium and large flats by individuals or companies seeking a quick turnover and big profits on a sellers' market.