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WEDNESDAY, JULY 18, 1979
HE REBUTTED THE ARGUMENT THAT THE GOVERNMENT SHOULD NOT COMPETE WITH PRIVATE ENTERPRISE IN PROVIDING HOMES FOR THOSE WITH THIS SALARY.
+ IT CAN BE ARGUED WITH EVEN GREATER FORCE THAT THE GOVERNMENT HOME OWNERSHIP SCHEME FOR LOWER INCOME GROUPS HAS HELPED TO STABILISE THE PRICES OF SMALL FLATS, AND HAS IN NO WAY DETERRED PRIVATE ENTERPRISE FROM BUILDING MOŘE SMALL FLATS, HE SAID.
UNDER MR. CHEONG-LEEN'S PROPOSAL, THE GOVERNMENT PROVIDES LAND AT FAIR MARKET VALUE AND ENTRUSTS THE BUILDING OF FLATS TO REPUTABLE PRIVATE DEVELOPERS ON THE SAME BASIS AS THE EXISTING SCHEME. INSTALMENT PAYMENT TERMS UP TO 15 YEARS AT 10 PER CENT ANNUAL INTEREST SHOULD BE MADE AVAILABLE AND THE PROJECT COULD BE TAKEN UP BY THE HONG KONG HOUSING SOCIETY SO THAT THE HOUSING AUTHORITY CAN CONCENTRATE ON PROVIDING HOMES FOR LOWER INCOME FAMILIES.
PARTICIPANTS WILL HAVE TO HAVE LIVED AND WORKED IN HONG KONG FOR AT LEAST TEN YEARS AND WILL NOT BE ABLE TO RESELL THEIR FLAT FOR AT LEAST SEVEN YEARS AFTER OCCUPING IT.
MR. CHEONG-LEEN REFERRED TO THE DISMAL FORECAST FOR NEW MEDIUM AND LARGE FLATS SET OUT IN THE PROPERTY REVIEW 1979+, OUT OF A TOTAL 65,255 PRIVATE AND PUBLIC DOMESTIC UNITS EXPECTED TO BE BUILT THIS YEAR THERE WILL ONLY BE 1.160 MEDIUM AND 355 LARGE FLATS. NEXT YEAR, OUT OF A TOTAL 66,705 UNITS, ONLY 615 WILL BE MEDIUM AND 350 LARGE FLATS.
HE SAID THERE WAS MUCH CONCERN AT THE SHARP INCREASES, OF BETWEEN 50 TO 150 PER CENT, OF BOTH RENTALS AND SELLING PRICES OF THESE FLATS WITHIN THE PAST 12 MONTHS, AND GAVE FOUR REASONS FOR THE INCREASES 1
* THE ARRIVAL OF EXPATRIATE PERSONNEL, WITH THE OPENING UP OF CHINA AND THE LICENSING OF MORE BANKS, WHO HAVE TO FIND QUICK AND PAY TOP PRICES FOR ACCOMMODATION,
* MONEY HAS BEEN COMING IN FROM FAR EASTERN
COUNTRIES FOR INVESTMENT IN REAL ESTATE,
* THE GOVERNMENT DOES NOT HAVE AN ADEQUATE
BUILDING PROGRAMME TO HOUSE CIVIL SERVANTS WHO ARE ENTITLED TO SUCH FLATS, AND
* SPECULATION BY INDIVIDUALS OR COMPANIES
SEEKING A QUICK TURNOVER AND BIG PROFITS ON A SELLERS' MARKET.
HE POINTED OUT THAT ALTHOUGH THE GOVERNMENT WILL SOON RELEASE A NUMBER OF SITES FOR HIGH-QUALITY PRIVATE RESIDENTIAL DEVELOPMENT, SUCH ACCOMMODATION WILL NOT COME ON-STREAM IN TWO TO FOUR YEARS TIME.
HONG KONG'S MIDDLE-INCOME BELONGERS ARE THE BACKBONE OF THE COMMUNITY. +THEY SHOULD NOT BE BLAMED FOR BEING CRITICAL OF GOVERNMENT'S APPARENT INDIFFERENCE TO THEIR PLIGHT, MR. CHEONG-LEEN
SAID.
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