ENG-2000 — Page 249

HOUSING

construction of housing development is under way. The second part comprises the subsequent five years when new sites are being prepared for allocation or sale for housing development. The third part comprises a further five years when new sites for housing development are being identified.

In February, the Government announced a five-year land sale and development programme for the period 2000-01 to 2004-05, including land for housing. An application system was introduced in 1999, and it allows developers to apply for the sale of sites on a reserve list.

Planning Studies

The Government completed two planning and engineering feasibility studies in 2000. New sites were identified for housing in North Lantau and the Western district of Hong Kong Island, with an anticipated total production of about 90 000 flats. The Government is conducting another eight planning and engineering feasibility studies to identify potential housing sites and to investigate the feasibility of intensifying or extending current developments. Five of these studies relate to the New Development Areas of Tseung Kwan O, North West New Territories, North East New Territories, Hong Kong Island South and Western District Development. These studies involve an anticipated increase in population of about 0.4 million by 2016. The remaining three studies involve other areas, totalling about 50 hectares of land capable of producing about 17 000 flats.

Supporting Infrastructure

To facilitate the timely provision of infrastructure to support the 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. Fifty-five key projects have been identified, and three projects have been completed. The total cost of the remaining 52 projects is $16 billion. In the five-year period from 2000-01 to 2004-05, $8.7 billion will be spent on these projects.

Monitoring Flat Production

The Housing Department, the Lands Department and the Territory Development Department are responsible for taking forward individual housing projects in the first eight years of the 13-year programme of flat production potential. The Planning Department is responsible for housing projects in the last five years of the programme.

Flat production is monitored by the Steering Committee on Land Supply for Housing, chaired by the Financial Secretary, using a well-structured mechanism for resolving problems affecting housing projects at both central and district levels.

Private Sector Housing

Residential Property Prices

Residential property prices remained stable in 2000. Properties were more affordable as average prices were about 53 per cent lower than those at the market peak in October 1997. Property speculation was minimal. More than 99 per cent of new mortgage loans approved were for owner-occupiers, showing that the market was largely end-user driven.

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