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Secretary for Housing's speech on first-time home buyers
Following is the speech by the Secretary for Housing, Mr Dominic S W Wong, in the Legislative Council motion debate on "Assistance to first-time home buyers" tonight (Wednesday);
Mr President,
It is the Government's policy objective under the Long Term Housing Strategy to provide adequate housing at an affordable price or rent to the people of Hong Kong. At present, over 52% of our population lives in public housing: 41% in public rental housing and 11% in various home ownership schemes in the public sector. Over the past ten years, we have made efforts to increase the home ownership rate in the community from 33% to 48%.
Subsidised schemes for home purchase
To achieve this, I must say again that we have indeed introduced various subsidised housing schemes to help eligible families to purchase flats. Under the Home Ownership Scheme (HOS) and the Private Sector Participation Scheme (PSPS) operated by the Housing Authority, flats are sold at up to 48% off the market price to eligible families who earn an income of less than $22,000 per month. Loans of up to 95% of sale price, underwritten by the Housing Authority and repayable over a period of twenty years, are granted to beneficiaries, with interest charged at the prime rate plus half a percentage point. So far, about 190,000 flats have been sold. A further 57,000 such flats are expected to be offered in the next three years, and production is expected to increase steadily, as will also the number of public housing rental flats to be built.
The Housing Authority also administers a Home Purchase Loan Scheme which, since 1988, has helped 9,000 eligible families to buy flats in the private sector. There is an annual quota of 1,500, with an interest-free loan ceiling of $300,000, or an option to receive a grant of $2,600 per month for 48 months for mortgage repayment.
There is also another scheme, the Option to Rent or Buy Scheme, which targets tenants affected by the Comprehensive Redevelopment Programme, clearees from squatter areas and Temporary Housing Areas, and Waiting List applicants due for public housing allocation. The first 1,214 flats were sold at a price level below that of HOS and PSPS, with similar financing arrangements. I can assure members that more such flats will be offered this year and also in the future years.
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