TNAG-1632-FCO40-2248-Ministerial-visits-from-the-UK-to-Hong-Kong--including-visit-1987 — Page 123

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VISIT TO HONG KONG BY LORD GLENARTHUR, 16-19 SEPTEMBER

BACKGROUND BRIEF E: HOUSING AND NEW TOWNS

1.

Public housing is a priority commitment which accounts for about one-third of the Hong Kong Government's total annual capital expenditure. At present 2.6 million people or about 47% of the population live in rented or self-owned public housing.

2.

T

Since its establishment in 1973, the Hong Kong Housing Authority has been tasked with providing flats for needy families at a rent or price they can afford. It now provides flats up to 54

suqare metres in size at rents set so as not to exceed 15% of the

incoming tenants' median income. These rents are about one quarter to one third of those for comparable private sector accommodation. With the introduction of the Home Ownership Scheme in 1978 and the Private Sector Participation Scheme in 1979, a range of flats between 37 square metres and 60 square metres in area have been

offered for sale to eligible families at about 25% below full market

value.

3.

In 1986, the Authority completed 37,100 new rental flats and 9,600 flats for sale, thereby exceeding its annual target of 40,000 flats for the seventh successive year. During the same period, the private sector completed 37,140 flats.

4.

In April 1987, the Hong Kong Government announced a $20,000 million Long Term Housing Strategy, under which the public and private sectors are jointly expected to build 1,085,000 new homes so as to satisfy all outstanding housing demand by the year

2001.

5.

Under this Housing Strategy, the Authority aims to have met substantially, by 1996/97, the demand for rental accommodation

arising from the clearance of squatters and from families on the

public housing waiting list. It will also encourage and facilitate home purchase by offering more flats for sale and by giving interest-free loans to help eligible families to buy homes in the