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FRIDAY, JUNE 23, 1978
THE HOUSING AUTHORITY WAS ABLE TO ACHIEVE THIS BY FOREGOING THE PROF ITS EXPECTED BY A REAL ESTATE DEVELOPER.
PISS CHUNG SAID GOVERNMENT HAD THE OPTION OF SELLING HOME OWNERSHIP FLATS AT COST OR BELOW COST. HOWEVER, TO SELL BELOW COST WOULD BE UNACCEPTABLE AS THIS WOULD LEAD TO A RAPID DEPRECIATION OF THE FUNDS NECESSARY TO RECYCLE CONSTRUCTION FINANCE FOR THE SCHEME.
+ IN VIEW OF THE HIGHER INCOME GROUP THAT WE ARE CATERING TO AND IN VIEW OF THE CAPITAL ADVANTAGE OFFERED UPON SUCCESSFUL APPLICANTS FOR HOME OWNERSHIP FLATS, IT WOULD BE UNJUSTIFIABLE TO SUBSIDISE ONE SECTOR OF THE COMMUNITY AT THE EXPENSE OF TAXPAYERS.+
A DECISION HAD THEREFORE BEEN MADE THAT FLATS SHOULD BE SOLD AT COST. MORE SPECIFICALLY, THIS MEANT THAT REVENUE FROM SALES WOULD COVER EXPENDITURE ON LAND PREMIUM AND COST OF CONSTRUCTION, ADMINISTRATION AND FINANCING INCURRED BY THE HOUSING AUTHORITY.
MISS CHUNG ADDED: +BECAUSE THE OPEN MARKET VALUE OF THE FLATS ARE IN ALL CASES CONSIDERABLY HIGHER THAN THE SALES PRICES RECOMMENDED BY THE AUTHORITY, GOVERNMENT HAS DECIDED THAT IT IS ESSENTIAL TO INTRODUCE CERTAIN RESTRICTIONS ON RESALE IN ORDER TO DISCOURAGE SPECULATION ON THE PART OF BUYERS WHO ARE MORE INTERESTED IN PROPERTY INVESTMENT OR SPECULATION THAN IN HOME OWNERSHIP.+
ACCORDINGLY, THE RULE WAS THAT WITHIN A PERIOD OF FIVE YEARS FROM THE DATE OF PURCHASE THE BUYER WISHING TO SELL THE FLAT WOULD BE PLACED UNDER AN OBLIGATION TO OFFER THE FLAT TO THE HOUSING AUTHORITY AT THE PRICE HE ORIGINALLY PAID.
MISS CHUNG SAID THAT A NUMBER OF NEWSPAPER EDITORS HAD SAID THAT THE REASONS FOR THE HOUSING AUTHORITY NOT BEING EXACTLY SNOWED UNDER BY APPLICATIONS FOR PHASE OF THE HOME OWNERSHIP FLATS WAS THE RESTRICTIONS IMPOSED ON BUYERS AND THE STRICT ELIGIBILITY/DISQUALIFICATION RULES.
FACT
HOWEVER, GOVERNMENT WOULD BE FAILING IN ITS DUTY IF I THE SCHEME ONLY BENEFITED SPECULATORS AND DENIED THE CHANCE OF HOME OWNERSHIP TO GENUINE BUYERS.
+THERE IS NO QUESTION WHATSOEVER OF TRYING TO MAKE THE SCHEME SUPERFICIALLY ATTRACTIVE IF IN FACT THE DEMAND FOR SUCH FLATS FROM THE FAMILIES CONCERNED IS NOT THERE, SHE SAID.
J
+FURTHERMORE, THERE IS NO INTENTION ON THE PART OF GOVERNMENT TO INHISIT THE PRIVATE SECTOR BECAUSE IN THE FINAL ANALYSIS IT IS ONLY WITH A GREATER SUPPLY OF HOUSING BOTH PRIVATE AND PUBLIC THAT THE QUANTITY AND QUALITY OF ACCOMMODATION IN HONG KONG WILL BE IMPROVED AND THE PRICS OF FLATS STABILISED.+
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