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HOUSING AND LAND
formation contracts in progress are at Shun Lee Tsuen and Ngau Tau Kok, which are also in urban areas.
Construction
In forwarding the government's housing programme, the Housing Authority is now firmly geared to achieving the target of about 200 000 flats over the next five years. This pro- gramme comprises 148 600 public rental flats, 34 700 Home Ownership flats, and another 21 600 flats built for sale under arrangements with private developers, called the Private Sector Participation Scheme and Middle Income Housing Programme. During 1982, some 33 building contracts worth a total of $3,376 million were let, an increase of 23 per cent over 1981. At the end of the year, 86 contracts were in progress which, on completion, will provide 96 500 rental flats, 26 600 Home Ownership flats, 38 schools and 21 commercial centres over the next few years. In addition, 12 temporary housing areas and one flatted factory project providing a total of 2 100 lettable units were also under construction.
Home Ownership Scheme
To meet the community's growing aspirations for home ownership, the government has established a scheme that enables lower-income families to buy their own flats at prices well below the market value. Run by the Housing Authority, the scheme has already provided homes for some 28 000 families and a further 57 700 flats are scheduled to be built this decade.
Eligibility for the scheme is confined to two distinct groups – public housing tenants who are prepared to surrender their low-rent flats, and families living in private sector housing whose family incomes fall within a specific bracket with a maximum eligibility level (at present $6,500 a month) fixed just above that for public rental housing. Each category is also required to meet a number of other criteria concerning family composition and length of stay in Hong Kong.
Flats built under the scheme are up to the standard of good private developments, with modern fittings and door-phone security system. Sizes range from 35 to 65 square metres in net area with two or three bedrooms, kitchen, bathroom and living room. Prices of flats in Phases I to IIIA were based on cost of production including a land premium assessed at full market value. However, as production costs - particularly land – increased rapidly
- in 1980 and 1981, it became apparent that flats would soon be priced out of the reach of those people for whom the scheme was designed, and some means of reducing the price was necessary. As a result of recommendations approved by the Governor-in-Council in September 1981, a revised basis for determining flat prices was adopted for Phase IIIB onwards which excluded the land value element. The first batch of flats offered under the new pricing policy was sold in February 1982 at prices ranging from $127,500 to $296,400; a further 5 064 flats were offered for sale in June 1982 at prices between $119,700 and $266,200. With this change, the flats produced under the scheme remain within the means of those for whom they are intended.
Since the revised pricing policy involves a substantial initial subsidy to flat purchasers, more stringent flat resale restrictions have been imposed. During the first five-year period, resales are allowed only back to the Housing Authority at the original purchase price and during the second five-year period, back to the authority at a price related to that of Home Ownership flats being offered for sale at that time. After 10 years' occupation, an owner may clear the resale restriction by paying a premium to the government based on the current value of the proportion of the full market value of the flat not initially paid.