TNAG-1012-FCO40-1262-Address-by-Sir-Murray-MacLehose--Governor-of-Hong-Kong--at-t-1981 — Page 34

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This is on various assumptions including that 50% of 1 and

2 person households will continue to share

accommodation with others. If we succeed in completing ah 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.

47.

I am aware of the many pitfalls in these figures and predictions,

but I have dared to use them to illustrate how immense the task facing

us is, and how essential it is that both public and private sectors

continue to build to their maximum capacity if the task is to be

accomplished.

Conclusion

48.

49.

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.

50.

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

...