ENG-1998 — Page 251

HOUSING

Planning studies

The government is conducting 16 major planning and engineering feasibility studies to identify potential areas for housing development, to investigate the feasibility of intensifying or extending current developments and to examine the feasibility of developing identified sites for meeting our flat production targets. Six of the studies. are of the Strategic Growth Areas of Tung Chung/Tai Ho, Tseung Kwan O, North West New Territories, North East New Territories, Hong Kong Island South and Green Island Reclamation. These Strategic Growth Areas will accommodate an anticipated population of 790 000 by 2011. The remaining 10 studies involve other sites totalling more than 100 hectares of land, capable of producing more than 50 000 flats.

Supporting infrastructure

To facilitate the timely provision of infrastructure to support this massive housing programme, a control list of housing-related infrastructure projects has been compiled and a flexible financial arrangement for speeding up their implementation has been put in place. Some 60 key projects have been identified at a total cost of $17 billion. In the five-year period from 1998–99 to 2002-03, $14 billion will be spent on these projects.

Monitoring housing production

To expedite housing supply, the Steering Committee on Land Supply for Housing (HOUSCOM), chaired by the Financial Secretary, has devised a new accountability system for monitoring flat production and a well-structured mechanism for resolving speedily problems affecting housing projects at both central and district levels.

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Three lead departments the Housing Department, the Lands Department and the Territory Development Department are charged with the responsibility for taking forward individual housing projects on Flat Production Control Lists. produced and monitored by the Housing Bureau. They monitor the projects through different stages from site delivery to flat completion, and co-ordinate the efforts of the different government departments involved.

Private Sector Housing

Property Prices

The regional financial crisis which began in late 1997 triggered a correction in the overheated residential property market. Property prices fell on average by about 44 percent between October 1997 and December 1998. With lower prices, flats have become more affordable to genuine home buyers. Property speculation has subsided. On June 22, 1998, the government introduced a package of measures to revive the economy and stabilise the property market. These included suspension of all land sales for the remainder of the financial year and expansion of the quotas for the Home Purchase Loan Scheme and the Home Starter Loan Scheme.

Mixed Development

As a means to encourage further private sector involvement in the public housing programme, the government will invite private developers to build subsidised home ownership flats as part of 'mixed developments'. Under this approach, residential

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