TNAG-1012-FCO40-1262-Address-by-Sir-Murray-MacLehose--Governor-of-Hong-Kong--at-t-1981 — Page 32

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Public Sector

40.

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The public sector completed a record number of 37,600 flats

in the last financial year: 27,400 for rental including 600 by the

Housing Society, and for sale 2,700 under the Government's Home Ownership

Scheme, and 1,500 under the Private Sector Participation Scheme This

follows completion of 33,000 ünits in the previous year. This high

level can be maintained; the sites and the money are there; it is good

by any standard, but the situation with which we are now faced calls

for something more.

41.

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In the first place we have decided to revise the Home Ownership

Scheme as soon as possible so that the high land values that have been

included in the price do not frustrate the social purpose of the average

of 5,000 units a year to be built under the scheme. In future, as in

public housing estates for rental, land value will be excluded from the

charge. This should reduce prices to about half those in the free

market, well within the means of the families for whom the Scheme is

intended. The Secretary for Housing is to give details but obviously

with such favourable and subsidised terms there must be safeguards

against profiteering on resale. The proposal is to forbid resale,

except to the Housing Authority, for the first 10 years, thereafter a

premium would be payable on sale to make good to the Government the.

large element of subsidy, in the original price adjusted to current open:

market prices.

42.

Similar arrangements will also apply to the additional 5,000.

units a year planned for sale in the Private Sector Participation Scheme,

and the further 2,500 planned for the Middle Income Housing programme.

/43. ...