XN000022-1987-07-08 — Page 31

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WEDNESDAY, JULY 8, 1987

SHORTFALLS IN HOUSING STRATEGY IDENTIFIED * * * * *

A RESPONSIVE STEP

IN

HONG KONG IN HOUSING (PRH) TODAY

THE LONG TERM HOUSING STRATEGY REPRESENTS TAKEN BY GOVERNMENT TO MEET CHANGING HOUSING NEEDS THE LIGHT OF DWINDLING PUBLIC DEMAND FOR PUBLIC RENTAL

HON UNITS, THE

Y.F. HUI SAID IN THE LEGISLATIVE COUNCIL (WEDNESDAY).

SPEAKING AT THE ADJOURNMENT DEBATE, MR HUI SAID THERE HOWEVER, TWO SHORTFALLS IN THE STRATEGY.

OF

WERE,

"FIRST, THE ADOPTION OF THE HOME PURCHASE LOAN SCHEME (HPLS) INSTEAD OF PRIVATE SECTOR PARTICIPATION SCHEME (PSPS) AS THE LEAD STRATEGY; AND SECOND, THE EXCLUSION

THE HOUSING NEEDS OF THE SANDWICH CLASS, FOR WHICH REASON THE DOCUMENT WOULD BE MORE APPROPRIATELY ENTITLED LONG TERM HOUSING STRATEGY FOR THE LOWER INCOME GROUP," MR HUI SAID.

MR HUI SAID ALTHOUGH THE HPLS OFFERED A BETTER CHOICE OF ACCOMMODATION TO THOSE WHO COULD AFFORD TO BUY THEIR OWN FLATS, INCREASED DEMAND FOR HOME PURCHASE WOULD EASILY INFLATE THE PRICES PRIVATE FLATS, WHICH WOULD IN TURN PUSH UP THE COST OF LIVING.

OF

"IF THE LOAN OF HK$50,000 IS THE CARROT, THEN THE ENVISAGED

THAT RISING MORTGAGE PAYMENTS WILL BE THE STICK

BLUDGEONS THE HOME BUYERS INTO BEARING THE BRUNT OF THE PROPERTY MARKET, HE SAID.

++

"INDEED, IF INTEREST RATE SPIRALLED FROM ITS PRESENT LEVEL,

PRI THOSE HPLS PURCHASERS WHO ARE FORMER

TENANTS WOULD BE HELPING GOVERNMENT TO BUY ITS PRH FLATS BY PAYING PRIVATE DEVELOPERS HIGHER

FLAT PRICES.

T

AIMED AT ASSISTING THE BENEFITTED THE

MR HUI SAID ALTHOUGH THE LOAN SCHEME LOWER INCOME GROUP TO BUY THEIR OWN HOMES, IT IN FACT PRIVATE DEVELOPERS BY WAY OF INCREASED LAND SALES, BOOSTED BANKING WHICH ALTOGETHER BUSINESS, AND INVIGORATED CONSTRUCTION ACTIVITIES HELPED TO READJUST THE PROPERTY MARKET.

——

"

"FOR THIS REASON, I MUST DEMUR TO THE SCHEME THAT PROTECTS INTEREST OF THE RICH AT THE EXPENSE OF THE LOWER INCOME PEOPLE IN MIDST.

THE

OUR

/ON THE