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HOUSING
Class Housing Loan Scheme and Home Starter Loan Scheme on behalf of the Government. The HKHS is also involved in the redevelopment of old buildings in urban areas through its Urban Improvement Scheme. So far 29 projects comprising 5 070 flats have been completed under this scheme.
Housing Demand
Assessing housing demand
Housing demand varies according to economic conditions and population fluctuations, as well as policy decisions which may create housing needs (for example, the pace of squatter clearance). As these factors change, the government uses a computerised housing demand model to recalculate the demand for different categories of housing. As a result, the government is able to adjust its housing policies to take into account the most up-to-date assumptions and statistics.
The demand model shows that population growth for the period 1997-98 up to 2006-07 at an average rate of 1.6 per cent a year will continue to drive up flat production requirements. The estimated flat requirement over the period up to 2006-07 is in the order of 80 000 new flats a year. The government will regularly update this projected flat requirement.
Flat production targets
Taking into account projections of housing demand, the government's current target is to provide an average of 50 000 flats a year in the public sector, and form land and build the necessary infrastructure to meet the long term demand of about 35 000 flats a year in the private sector. This represents a 'safety margin' of 5 000 flats a year, or 6 per cent of the current forecast of housing demand.
Flats to be provided by the private sector will come from redevelopment and lease modification and some from new land sold by the government. The actual number of flats produced in any particular year will vary, depending on market demand and commercial decisions taken by private developers.
Changes to the breakdown between public and private sector housing will be made, if necessary, to reflect changes in housing demand.
Housing Supply
Flat production and land disposal programmes
The government has compiled a 13-year flat production programme to facilitate the planning and monitoring of housing production. The programme is divided into three parts. The first part comprises the first three years, when construction of housing development is under way. The second part comprises the subsequent five years, when new sites are being prepared for allocation or sale for housing development. The third part comprises the last five years, when new sites are being identified for housing development. The programme will be rolled forward regularly.
A five-year Land Disposal Programme was also announced in March 1998 to provide a clearer picture of land supply.