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Housing
SOME 2.7 million people, or 48 per cent of the population, are now accommodated in subsidised rental and home ownership public housing as a result of the continuing priority being given in the allocation of public funds to housing.
During the year, $6,360 million or 11.9 per cent of the government's Consolidated Annual Expenditure was devoted to the development and maintenance of subsidised public housing.
The Housing Authority produced 20 520 rental units, and offered for sale 12 242 units under the Home Ownership Scheme (HOS) and the Private Sector Participation Scheme (PSPS). The demand for assisted home purchase was so great that these flats were 15 times over-subscribed.
The private residential property market remained buoyant with production reaching a level of 32 470 units, compared with 37 140 in 1986.
The Hong Kong Housing Society continued to supplement the provision of public housing through its rental and rural public housing projects and its urban redevelopment schemes. Next year, it will be launching a new flats-for-sale scheme.
Extending its commitment to housing, the government adopted in March a new Long Term Housing Strategy which aims to make the provision of housing more demand-led. In line with rising expectations, it undertook to improve living standards in older housing estates through comprehensive redevelopment. Opportunities for assisted home purchase will also be increased by providing more flexibility in the balance between rental and HOS production to meet annual demand, and by introducing a Home Purchase Loan Scheme (HPLS). In future, prospective rental tenants will be offered an option to buy or rent. Under the HPLS, those eligible for HOS/PSPS will be offered the alternative of interest-free loans of $70,000 to buy private sector flats. The scheme will start with 2 500 loans next year.
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As a demand-led approach to housing requires close monitoring and co-ordination of both private and public sector production, consideration is being given to expanding the responsibilities of the Housing Authority to take charge of the overall housing programme and an outcome is expected in early 1988.
Housing Authority
The Hong Kong Housing Authority, established under the Housing Ordinance, is a statutory body responsible for co-ordinating all aspects of public housing. It advises the Governor on all public housing policy matters and, through its executive arm, the Housing Department, plans and builds public housing estates for various categories of people as determined by the authority with the approval of the Governor. It also manages public