HOUSING
December 31, 1998. Domestic tenancies previously subject to rent control will continue to enjoy security of tenure so long as the tenant is prepared to pay the prevailing market rent on expiry of the tenancy agreement.
Subsidised Home Ownership
To achieve the goal of expanding home ownership in the community, the Government has built subsidised flats for sale under various home ownership schemes since 1978 through the HA and the HKHS. The Government's long term target is to achieve a home ownership rate of 70 per cent by 2007, compared with 52 per cent at present.
Home Ownership Scheme, Private Sector Participation Scheme and Flats for Sale Scheme
The Home Ownership Scheme (HOS) and the Private Sector Participation Scheme (PSPS) were introduced by the HA in 1978 and 1979 respectively, to assist low and middle income households to purchase homes at prices below market value. About 284 000 flats have been sold so far to eligible households. These include 87 000 flats produced under the PSPS which makes use of resources of the private sector to produce flats for sale at subsidised prices. During 1999, 19 800 flats and 2800 flats were sold under the HOS and the PSPS respectively. The schemes were over-subscribed by four times.
In 1987, the HKHS implemented the Flats for Sale Scheme (FFSS) to complement the HOS and PSPS. 8 700 flats have been built under this scheme.
Applicants under the HOS, PSPS and FFSS fall into two categories: Green Form and White Form. White Form applicants (mainly applicants living in private sector housing) are subject to a domestic property restriction, a net asset limit of $700,000 and an income limit of $31,000 per month. These restrictions do not apply to Green Form applicants who are principally public rental tenants, residents of Temporary Housing Areas, Cottage Areas and interim housing managed by the HA, households displaced by the clearance of squatter areas for development, and natural disaster victims.
Affordability is the primary consideration in determining the price of HOS, PSPS and FFSS flats. In the case of subsidised home ownership flats built by the HA, sale prices generally reflect the Government's granting of land at reduced or nominal premium. Prices in each sales exercise represent about half of the market value of comparable private sector developments in similar locations.
The Secondary Market Scheme was established by the HA in June 1997 for the resale of subsidised home ownership flats, starting from the third year after first assignment, to sitting public rental housing tenants and Green Form Certificate holders. Flat prices are freely negotiated between the parties involved, subject to the transfer of premium liability to new purchasers. Since then, 11 000 applications for sale and 9 300 applications for purchase have been received; 5 700 transactions have been completed and 5 300 public rental flats have been recovered.
HOS, PSPS and FFSS flat owners may sell their flats in the open market starting from the sixth year after first assignment, subject to payment of a premium.
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