TUESDAY, MARCH 22, 1983
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MIDDLE INCOME HOUSING PROGRAMME DISCONTINUED
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NO FURTHER PROJECTS WILL BE BUILT UNDER THE MIDDLE INCOME HOUSING PROGRAMME, WHICH WAS STARTED IN 1980 TO ASSIST TOWARDS HOME OWNERSHIP FAMILIES WHOSE INCOMES EXCEED THE LIMIT FOR THE HOME OWNERSHIP SCHEME.
AS DISCLOSED BY THE FINANCIAL SECRETARY IN HIS BUDGET SPEECH, A REVIEW WAS CARRIED OUT RECENTLY TO ASCERTAIN WHETHER THERE WAS STILL A NEED FOR THE MIHP IN TODAY'S CIRCUMSTANCES.
A GOVERNMENT SPOKESMAN SAID TODAY IT WAS DECIDED THAT THE PROGRAMME SHOULD BE DISCONTINUED IN VIEW OF THE CHANGES WHICH HAD TAKEN PLACE IN THE PROPERTY MARKET AND THE FINANCIAL SECTOR.
ONLY ONE PROJECT HAS BEEN DEVELOPED UNDER THE PROGRAMME: MELODY GARDEN ESTATE, NOW NEARING COMPLETION, AT BUTTERFLY BEACH, TUEN MUN.
APPLICATIONS FOR FLATS IN THIS ESTATE, AT PRICES FROM $200 200 TO $370 200 WERE INVITED EARLIER THIS MONTH, AND THE CLOSING DATE FOR THE RECEIPT OF APPLICATIONS IS NEXT MONDAY (MARCH 28).
THE SPOKESMAN EXPLAINED THAT THE PROGRAMME WAS STARTED AT A TIME WHEN HIGH AND RAPIDLY RISING PRIVATE PROPERTY PRICES MADE IT DIFFICULT FOR GENUINE HOME BUYERS IN THE MIDDLE INCOME BRACKET TO FINANCE THE PURCHASE OF A SUITABLE FLAT.
+HOWEVER, PRIVATE FLATS ARE NO LONGER BEYOND THE MEANS OF THOSE FOR WHOM THE MIDDLE INCOME HOUSING PROGRAMME WAS INTRODUCED, HE SAID.
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+THIS IS DUE TO SIGNIFICANTLY LOWER PRICES FOR PRIVATE FLATS, OF WHICH THERE WAS A RECORD NUMBER VACANT AT THE END OF 1982, AND AN AVERAGE MORTGAGE INTEREST RATE OF 12 PER CENT, COMPARED WITH THE PEAK OF 21 PER CENT IN OCTOBER 1981.+
A FURTHER FACTOR MAKING THE PURCHASE OF A FLAT MORE AFFORDABLE IS THE AVAILABILITY NOW OF MORTGAGE LOANS WITH PAYMENT PERIODS EXTENDING OVER AS LONG AS 20 YEARS, WHICH CAN REDUCE CONSIDERABLY THE SIZE OF MONTHLY PAYMENTS NECESSARY TO FINANCE HOME PURCHASE.
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