XN000022-1995-07-05 — Page 82

- 62 ·

Answer:

Mr President,

In the context of the Governor's Policy Address in 1992, home ownership refers to occupation of housing units by owners as their homes. This rate is not easy to forecast as it is sensitive to various factors including the supply of flats, market sentiment and people's affordability to buy.

Latest indications suggest that the home ownership rate by 1997 may be a few percentage points below what was forecast in 1992. This may be attributed largely to high property prices in the past two years, which reduces potential buyers' affordability and incentive to purchase homes. A more accurate assessment of the practicability of achieving the target can be made when the Housing Branch has completed its review of the Government's Long Term Housing Strategy in mid-1996.

In the next three years, the Government will adopt a comprehensive approach to help families to buy their own flats. For lower income families, the Home Ownership Scheme, the Private Sector Participation Scheme, the Flats for Sale Scheme and the recently enhanced Home Purchase Loan Scheme will continue to be available. On average, about 27,000 such families will be assisted to purchase homes each year.

For sandwich class families, a loan scheme and a flats for sale scheme are available. On average, about 4,100 such families will benefit each year.

There are others who fall outside the purview of all these schemes or who wish to buy flats in the private sector. For these families, the Government's task is to ensure that property prices are not inflated by speculative activities. The anti-speculation measures introduced since June 1994 have been achieving the desired effect. We shall continue to monitor the property market closely and guard against any rekindling of speculative activity. In parallel, we will provide an adequate supply of land for housing construction and will accelerate housing production whenever possible through the Housing Project Action Team chaired by the Secretary for Housing.

While the Government provides help in various ways listed above, in the end the decision whether or not to buy a flat rests with the individual who must take into account his own circumstances.

End/Wednesday, July 5, 1995