ENG-2016 — Page 226

Chapter 12

Housing

The government's policy objectives are to help grassroots families secure public rental housing to meet their basic housing needs; provide subsidised sale flats to build a progressive housing ladder; and maintain the healthy and steady development of the residential market, giving priority to Hong Kong permanent residents' needs.

Hong Kong had about 2,730,000 flats as at end-December 2016, comprising about 800,000 public rental units1, 400,000 subsidised sale flats2 and 1,530,000 private-sector flats. About 29 per cent and 16 per cent of the population live in public rental units and subsidised sale flats, respectively.

Long Term Housing Strategy

The government adopts a supply-led principle according to its Long Term Housing Strategy to address the supply-demand imbalance.

Three major directions are set out in the strategy: (1) to build more public rental housing (PRH) and ensure the rational use of resources; (2) to provide more subsidised sale flats, expand the forms of subsidised home ownership and facilitate market circulation of existing stock; and (3) to stabilise the residential market through steady land supply and demand-side management measures, and promote good sales and tenancy practices for private residential properties.

In December 2016, the government announced a total housing supply target of 460,000 flats for the 10 years from 2017-18 to 2026-27, maintaining the public-private split at 60:40. Accordingly, the public housing supply target is 280,000 units, comprising 200,000 PRH units and 80,000 subsidised sale flats, and the private housing supply target is 180,000 units. The government updates the long-term housing demand projection annually and presents a rolling 10-year supply target to reflect changing circumstances.

1 Including PRH and interim housing flats under the Hong Kong Housing Authority and rental flats under the Hong Kong

Housing Society.

Excluding 323 flats provided by the Urban Renewal Authority on a one-off basis in 2015-16.

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