ENG-2000 — Page 251

HOUSING

and loan schemes through the HKHA and the HKHS to enable eligible families to buy their own homes. The target is to achieve an overall home ownership rate of 70 per cent by 2007, compared with 53 per cent at present.

Home Ownership Scheme, Private Sector Participation Scheme and

Flats for Sale Scheme

The HOS and PSPS were introduced by the HKHA in 1978 and 1979 respectively, to assist low and middle income households to purchase homes at about half the market value of comparable private sector developments at similar locations. About 297 600 flats have been sold so far to eligible households. In 2000, 5 100 flats and 6 000 flats were sold under the HOS and PSPS respectively, and the sale exercises were five times over-subscribed on average.

In 1987, the HKHS implemented the Flats for Sale Scheme (FFSS) to complement the HOS and PSPS. So far, 8 736 flats have been built.

Applicants under the HOS, PSPS and FFSS fall into two categories: Green Form and White Form. White Form applicants (mainly living in private sector housing) are subject to a domestic property restriction, a net asset limit of $700,000 and an income limit of $31,000 per month. These restrictions do not apply to Green Form applicants who are principally public rental housing tenants, residents of Temporary Housing Areas, Cottage Areas and interim housing managed by the HKHA, households displaced by the clearance of squatter areas for development, and victims of natural disasters.

Affordability is the primary consideration in determining the price of HOS, PSPS and FFSS flats. In the case of subsidised home ownership flats built by the HKHA, sale prices also reflect the Government's granting of land at reduced or nominal premium. Prices in each sale exercise represent about half of the market value of comparable private sector developments at similar locations.

The Secondary Market Scheme was established by the HKHA and the HKH$ in 1997 for the resale of subsidised home ownership flats, starting from the third year after first assignment, to sitting public rental housing tenants and Green Form Certificate holders. Flat prices are freely negotiated between the parties involved, subject to the transfer of premium liability to new purchasers. Since then, 16 612 applications for sale and 13 418 applications for purchase have been received; 9 366 transactions have been completed and 7 866 public rental housing flats have been recovered.

HOS, PSPS and FFSS flat owners may sell their flats in the open market starting from the sixth year after first assignment, subject to payment of a premium.

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 to 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 the 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 has been suspended since October 1998.

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