ENG-1989 — Page 220

HOUSING

During 1989, a total of 16 777 flats were sold, starting in January with 5 278 flats in Phase 10C. Applications were invited for a further 5 865 flats in Phase 11A in April 1989 and over 108 000 applications were received, a record since the scheme began.

In August another 5 634 flats were put up for sale, attracting about 60 000 applications, despite the uncertain state of the property market in mid-1989. Finally, in December, applications were invited for 5 867 flats in one PSPS and five HOS estates. This included 4 275 flats in upgraded blocks transferred to HOS from the rental housing programme.

The prices and sizes of flats sold covered a wide spectrum, with prices ranging from $177,600 for a 36-square metre flat at On Shing Court, Sheung Shui, to $593,500 for a large flat of 60 square metres at King Lai Court, Ngau Chi Wan.

Home Purchase Loan Scheme

The Home Purchase Loan Scheme, administered by the Housing Authority, forms an in- tegral part of the government's Long Term Housing Strategy. The purpose of the scheme is to promote home purchase by assisting lower-middle income families to purchase flats of their own in the private sector. Eligible applicants are offered interest-free loans, repayable up to 20 years, to help overcome the problems of initial financing faced by many families wishing to buy their own homes.

After one year, the authority carried out a review of the scheme, and this resulted in a number of changes. The more significant of these were the extension of eligibility to families in the private sector in addition to existing applications from sitting or prospective tenants in public sector housing, an increase of the loan from $70,000 to $110,000 and relaxation of the restriction on the age of property to be purchased from five years to 10 years.

For budgetary purposes, a quota of 6 000 loans was set aside for 1989-90. During the year, a more flexible approach was adopted regarding the application period in that applications remained open until further notice in the light of general response. A total of 10 000 applications were received, of which 5 500 (55 per cent) were from public hous- ing applicants, and 4 500 (45 per cent) from the private sector. Altogether, 6 000 applicants were found eligible. A total of 2 500 loans were granted. As a result, 650 loan recipients had served notice-to-quit, their public housing units being recovered for re-allocation to other families.

Allocation

The Housing Authority owns and manages 621 000 rental flats in 135 housing estates. These flats are of different sizes, amenities and rent levels to meet the wide-ranging requirements of families in need of public housing.

During the year, 41 600 new flats and 8 000 vacated flats were let to the various categories of eligible applicants. The biggest share went to Waiting List applicants (32 per cent), followed by tenants involved in the redevelopment of the old Mark I and II blocks and in the comprehensive redevelopment programme (26 per cent), and families affected by development clearances (15 per cent). Junior civil servants, victims of fires and natural disasters, occupants of huts and other structures in dangerous locations, compassionate cases recommended by the Social Welfare Department, families affected by Kowloon Walled City clearance and applicants from Temporary Housing Areas took up the rest of the flats.

The Public Housing Waiting List and allocation of rental flats have been computerised, with information on nearly three million applicants and tenants being stored in the Hous- ing Applications and Tenancies Management Information System. The system enables

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