- 18.
Answer:
Mr President,
The required information is given in the table attached (note).
The main reasons for purchasers of uncompleted Home Ownership Scheme and Private Sector Participation Scheme flats failing to complete sale and purchase agreement after payment of deposits are changes in family circumstances (such as moving out of grown-up children upon marriage, death of principal income earner), emigration and change of mind instead to purchase flats in the private property market.
The mortgage repayment default rate in the past five years is very low. The number of cases is given below-
Default cases
1991-92
26
1992-93
33
1993-94
18
1994-95
14
39
1995-96
A breakdown by white form and green form applicants is not available.
Affordability remains the primary consideration for setting prices of Home Ownership Scheme and Private Sector Participation Scheme flats. Prices for each phase are determined with reference also to the market value of comparable private sector flats in similar locations, with a discount of at least 30% of market value (the discount being around 45% in the last eight phases). The high subscription rate is evidence that the flats are affordable. There is no need to make price adjustments.
The number of flats for sale in each phase will be determined in the light of demand and the flat production rate.
No comments yet.
Private notes are available after approval.