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THURSDAY, JUNE 9, 1994
OF
IN THE MEDIUM AND LONG TERM, WE SHALL INCREASE HOUSING SUPPLY. THE TARGET OF BETWEEN 45,000 AND 60,000 MORE FLATS BY 2001 ABOVE THE CURRENT PRODUCTION OF 74,000 FLATS A YEAR IS SIGNIFICANT, AND IT WILL MAKE AN IMPACT ON PRICES. THIS AMOUNTS TO AN AVERAGE 7,500 TO 10,000 MORE FLATS EACH YEAR. THE OUTPUT IS ROUGHLY EQUIVALENT TO THE ENTIRE HENG FA CHUEN DEVELOPMENT. THESE FIGURES DO NOT INCLUDE THE HOUSING AUTHORITY'S EFFORTS TO PROVIDE UP TO A FURTHER 13,000 FLATS ON INFILL SITES. THE PRODUCTION TARGET NOT ONLY CATERS FOR THE NEED TO PROVIDE SHELTER FOR A LARGER POPULATION. TAKES ON BOARD THE ASPIRATIONS OF A MORE AFFLUENT COMMUNITY FOR HOMB OWNERSHIP AND BETTER HOUSING STANDARDS. WE HAVE ALLOWED A 50% MARGIN OVER AND ABOVE THE PROJECTED INCREASES IN NEW HOUSEHOLDS.
IT ALSO
HOWEVER, IT TAKES TIME TO BUILD NEW FLATS. IN THE MEANTIME, POTENTIAL HOME BUYERS WHO CANNOT AFFORD TO BUY NOW MUST DECIDE FOR THEMSELVES WHETHER THEY SHOULD WAIT FOR ADDITIONAL SUPPLY TO COME ON STREAM, WHILE THEIR INCOME INCREASES, OR TO PLUNGE INTO THE MARKET NOW AND PAY THE PRICE FOR IT. IT IS ALSO A FACT OF LIFE THAT LAND IN THE OLDER URBAN AREAS IS LIMITED. INCREASINGLY, HOME BUYERS SHOULD LOOK TO THE NEW TOWNS WHICH OFFER A MORE SPACIOUS LIVING ENVIRONMENT AND BALANCED DEVELOPMENT. WHILE TRAFFIC MAY BE A PROBLEM IN SOME AREAS NOW, INDEED IT IS A PROBLEM IN SOME AREAS NOW, THE SITUATION WILL IMPROVE WITH THE CONSTRUCTION OF TRUNK ROADS AND EXTENSION OF THE RAILWAY SYSTEMS.
THE INITIAL MEASURES WHICH WE HAVE INTRODUCED ARE MODEST. DELIBERATELY SO. WE TOOK INTO ACCOUNT A 10% TO 15% DROP IN PROPERTY PRICES SINCE MARCH; RISING INTEREST RATES WHICH HAVE A DAMPENING EFFECT ON THE MARKET; AND PUBLIC CONCERN THAT WE SHOULD BE PRUDENT, TO GUARD AGAINST A MARKET CRASH. THE PACKAGE OF MEASURES WHICH HAS BEEN ANNOUNCED DEMONSTRATES OUR RESOLVE. WE HOPE IT WILL GIVE A CLEAR SIGNAL TO SPECULATORS TO STAY AWAY. HOWEVER, IF EXCESSIVE SPECULATION CONTINUES, WE WILL HAVE TO TAKE FURTHER ACTION, AND THIS MAY WELL INVOLVE LEGISLATION AND PUNITIVE MEASURES.
I AM ACUTELY CONSCIOUS OF THE IMPORTANCE OF HOUSING TO PEOPLE'S LIVELIHOOD AND SOCIAL STABILITY. TO ENSURE THAT HOUSING GETS THE PRIORITY AND ATTENTION IT DESERVES, WE PROPOSE TO APPOINT A NEW SECRETARY FOR HOUSING WHO WILL BE RESPONSIBLE FOR BOTH PUBLIC AND PRIVATE HOUSING POLICIES AND PROGRAMMES IN HONG KONG, THIS APPOINTMENT WILL NOT AFFECT THE AUTONOMY OF THE HOUSING AUTHORITY OR THE RESPONSIBILITIES OF ITS CHAIRMAN IN ANY WAY. HONOURABLE MEMBERS WILL BE ASKED TO APPROVE THE CREATION OF THE POST AND A NEW HOUSING BRANCH IN THE AUTUMN. I HOPE MEMBERS WILL GIVE THIS MOVE THEIR UNQUALIFIED SUPPORT.
FINALLY, I WISH TO COMMENT ON THE LAND AUCTION ON 26 MAY. THERE ARE DIFFERENT VIEWS AS TO WHAT THE PROCEEDINGS ON THAT OCCASION REPRESENTED. IT IS UNFORTUNATE, HOWEVER, THAT THE PERCEPTION IN THE COMMUNITY IS THAT A SYSTEM WHICH HAS WORKED WELL FOR MANY YEARS MAY HAVE BEEN SUBJECT TO SOME FORM OF ABUSE. THE ADMINISTRATION WILL BE REVIEWING THE ARRANGEMENTS TO ENSURE THAT TRUE AND FAIR COMPETITION IS MAINTAINED. THREE RESPECTED AND INDEPENDENT MEMBERS OF THE COMMUNITY WILL BE INVOLVED IN THE REVIEW. I HAVE ASKED TO SEE THE FINDINGS
IN JULY.
THE REVIEW BEFORE THE NEXT AUCTION
OF
/FOLLOWING IS