XN000022-1978-06-23 — Page 6

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FRIDAY, JUNE 23, 1978

HOME OWNERSHIP SCHEME TAILOR-MADE FOR HONG KONG

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PRINCIPAL ASSISTANT SECRETARY FOR HOUSING, MISS ELAINE CHUNG, TODAY STATED THAT THE HOME OWNERSHIP SCHEME IN THE FORM WHICH HAD BEEN EVOLVED SO FAR WAS UNIQUE AND TAILOR-MADE TO THE CIRCUMSTANCES CF HONG KONG.

+WE HAVE HAD EXAMPLES FROM ALL OVER THE WORLD TO PLAGIARISE, BUT TO THE CREDIT OF THE HONG KONG GOVERNMENT AND THE HOUSING AUTHORITY SCHEMES ELSEWHERE PROVIDED NO MORE THAN A POINT OF REFERENCE AND CONSULTATION, SHE SAID AT A LUNCHEON MEETING OF THE HONG KONG BRANCH OF THE ROYAL INSTITUTE OF CHARTERED SURVEYORS.

SHE ADDED: +1 AM QUITE CONFIDENT THAT THE HOME OWNERSHIP SCHEMÉ WILL BE A GREAT SUCCESS JUDGED BY THE OBJECTIVES GOVERNMENT HAS SET OUT TO ACHIEVE AND THAT THE SCHEME WILL GROW IN THE EARLY 805 TO BE A MAJOR FORCE IN IMPROVING LIVING CONDITIONS IN HONG KONG. +

MISS CHUNG SAID THAT, OWING TO ITS SOCIAL PURPOSE, THE HOME OWNERSHIP SCHEME WAS QUITE DIFFERENT FROM PRIVATE SECTOR SCHEMES.

TO START WITH, IT WAS NON-PROFIT MAKING.

+ IF GOVERNMENT HAD EVER SET OUT TO BE TOP OF THE POPS' INSOFAR AS SALES ARE CONCERNED, ITS MARKETING POLICIES WOULD HAVE BEEN MARKEDLY DIFFERENT. +

THERE WOULD HAVE BEEN FOR INSTANCE NO MAXIMUM INCOME LIMITS, NO FIVE-YEAR RESTRICTION, NO BAN ON SUB-LETTING, EXCEEDINGLY LOW PRICES AND/OR MORTGAGE TERMS.

BUT WOULD SUCH A SCHEME BE RIGHT FOR HONG KONG IF JUDGED AGAINST THE FOLLOWING CRITERIA:

*

ASSISTING FAMILIES IN NEED OF HOME OWNERSHIP AT A PROPER LEVEL OF SUBSISTENCE=

* NOT STIFLING THE PRIVATE SECTOR- AND

*

ALL THESE AT A PRICE HONG KONG TAXPAYERS COULD AFFORD?

THE LAST CRITERION WAS STRAIGHTFORWARD AND EASILY UNDERSTOOD, BUT THE FIRST TWO WERE ALMOST CONTRADICTORY TO EACH OTHER AND IT WAS DIFFICULT, AS EXPERIENCE ELSEWHERE INDICATED, TO ACHIEVE A FINE BALANCE BETWEEN THESE TWO OBJECTIVES.

+1 THINK WE IN HONG KONG HAVE BEEN ABLE TO ACHIEVE THIS, + MISS CHUNG SAID.

+FAMILIES OTHER THAN PUBLIC HOUSING TENANTS EARNING *3,500 A MONTH WILL BE ABLE TO PURCHASE SELF-CONTAINED FLATS OF 400-500 SQUARE FEET EACH AT PRICES RANGING FROM $86,000 TO 170,000, OR APPROXIMATELY 220 - 240 PER SQUARE FOOT. THIS IS OF COURSE MUCH LESS THAN OPEN MARKET PRICES WHICH ARE STEADILY ESCALATING.+

'THE HOUSING