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HOUSING

Sandwich Class Housing Scheme

The Sandwich Class Housing Scheme, comprising a Main Scheme and a Loan Scheme and administered by the HKHS, was introduced in 1993 to help middle- income families buy their own homes.

The Main Scheme involved the construction of flats which were sold to eligible applicants at discounted prices subject to a five-year resale restriction. Land was granted to HKHS on concessionary terms but all other development costs were borne by the HKHS. So far, 8 900 flats have been completed. As property prices have dropped substantially and many private sector flats are now within the reach of middle-income families, the Main Scheme was suspended in October 1998, except for projects under construction (about 3 100 flats).

The Loan Scheme provided subsidised loans to eligible households to enable them to buy their own homes in the private sector. A total of 5 700 loans, worth $2.7 billion, were granted. The Loan Scheme was abolished in March following a review of subsidised housing loan schemes. Eligible households may continue to obtain loans under the Home Starter Loan Scheme and the Home Purchase Loan Scheme.

Tenants Purchase Scheme

Announced in December 1997, the Tenants Purchase Scheme provides an opportunity for at least 250 000 households living in public rental housing to buy their flats at reasonable and affordable prices over the ten years period up to 2007. This arrangement will make a significant contribution to achieving a target of 70 per cent home ownership in Hong Kong by 2007.

Phase 1 of the scheme was launched in January 1998, and 20 100 (75 per cent) out of 27 000 eligible households purchased their own flats. Phase 2 involving another 27 000 flats was launched in March. Over 85 per cent families indicated interest in buying, and 9 800 households (36 per cent) have so far bought their flats.

Buy or Rent Option

The framework of the Buy or Rent Option, under which prospective public housing tenants who are eligible for flat allocation within one year will be offered an option of owning their own homes at the outset, was approved by the HA in March. The initiative is also open to tenants affected by redevelopment and clearance programmes as well as eligible civil servants. During the year, about 1 600 flats were sold under the scheme. Eligible purchasers may also opt to receive a mortgage subsidy of up to $162,000 over a period of six years. So far, about 1 500 households bought their homes with this subsidy.

Home Purchase Loan Scheme

The Home Purchase Loan Scheme was introduced by the HA in 1988 to assist low and middle income families to purchase flats. Eligible families are offered an interest- free loan of up to $800,000, or a monthly subsidy of up to $5,100 for 48 months, for mortgage repayment to purchase their own homes. So far 32 000 loans and 1 800 subsidies have been granted. A quota of 4 500 loans (3 000 for Green Form and 1 500 for White Form applicants) has been set for 1999-2000.