XN000022-1981-10-07 — Page 13

WEDNESDAY, OCTOBER 7, 1981

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PRIVATE SECTOR HOUSING

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ABOUT 71 500 HOUSING UNITS WOULD BE COMPLETED BY THE PRIVATE AND PUBLIC SECTORS IN THE CURRENT YEAR, COMPARED WITH 59 100 UNITS FOR LAST YEAR, THE GOVERNOR, SIR MURRAY MACLEHOSE, SAID TODAY.

OF THESE, THE FORECAST IS FOR THIS YEAR'S TOTAL TO EXCEED 31 000 UNITS IN THE PRIVATE SECTOR, WHILE THE ANNUAL COMPLETION OF PUBLIC SECTOR UNITS SHOULD STEADILY RISE FROM THE CURRENT LEVEL OF AT LEAST 35 000 UNITS TO OVER 42 000 BY 1985/86.

THE GOVERNOR POINTED OUT THAT THE DIMENSIONS OF THE HOUSING SHORTAGE WERE VERY HARD TO QUANTIFY WITH ACCURACY.

THE GOVERNOR SAID: +A COMPARISON ON THE NUMBER OF HOUSEHOLDS RECORDED IN THE CENSUS AGAINST OUR STOCK OF SELF-CONTAINED FLATS IN THE PUBLIC AND PRIVATE SECTORS PRODUCES A SHORTAGE OF SOME 260 000 FLATS. THIS IS ON VARIOUS ASSUMPTIONS INCLUDING THAT 50 PER CENT OF ONE AND TWO PERSON HOUSEHOLDS WILL CONTINUE TO SHARE ACCOMMODATION WITH OTHERS.

+ IF WE SUCCEED IN COMPLETING AN AVERAGE, AND I STRESS THE WORD AVERAGE, OF ABOUT 40 000 A YEAR IN THE PUBLIC AND 26 000 A YEAR IN THE PRIVATE SECTOR, OVER THE NEXT FIVE YEARS, THAT IS TO SAY 330 000 NEW FLATS BY THE END OF THE FINANCIAL YEAR 85/86, AFTER ALLOWING FOR INCREASE IN POPULATION AND DEMOLITION OF EXISTING FLATS FOR REDEVELOPMENT AND THE TREND TOWARDS THE FORMATION OF MORE, SMALLER HOUSEHOLDS, THE SHORTFALL SHOULD BE REDUCED TO ABOUT 90 000 AND UNFORESEEN CIRCUMSTANCES APART THE PROBLEM SHOULD BE REDUCED TO MANAGEABLE PROPORTIONS IN THE SECOND HALF OF THIS DECADE.

THERE WERE TWO FURTHER POINTS ON THIS IMPORTANT SUBJECT.

+FIRSTLY THE SOLUTION TO THIS PROBLEM ASSUMES A LARGE CONTRIBUTION BY THE PRIVATE SECTOR. CONSEQUENTLY IF PRIVATE SECTOR PRODUCTION FALLS OFF, EITHER WAYS OF ENCOURAGING IT, OR AN INCREASE IN GOVERNMENT CONSTRUCTION, MUST BE CONSIDERED.

+SECONDLY THE SHARP RISE IN LAND AND PROPERTY PRICES,

IN ADDITION TO INTEREST RATES, HAS GREATLY AGGRAVATED THE EFFECTS OF HOUSING SHORTAGE. HOUSING OTHERWISE AVAILABLE HAS BECOME BEYOND THE MEANS OF THOSE WHO NEED IT, THE PROPORTION OF FAMILY INCOMES SPENT ON RENTS OR MORTGAGES HAS BEEN GROSSLY INFLATED. THIS IS PERHAPS THE GREATEST SINGLE CAUSE OF UNHAPPINESS AND WORRY IN HONG KONG AT THIS TIME.

+YOU WILL NOTE THAT THE GOVERNMENT'S ANSWER IS TO BUILD OVER 42 000 FLATS A YEAR WHICH WILL BE EITHER SOLD OR RENTED ON A BASIS THAT TOTALLY EXCLUDES LAND VALUE ON THE OPEN MARKET, THE GOVERNOR SAID.

/REFERRING TO