Target 470,000 Units In Next Ten Year.

Transaction  2014-01-16  3.5K #Transaction
(By Chen Guangsheng)
Facing housing lack, Leung Chun-ying expressed in the new policy address that, he understands citizens' housing problem, and government's target is Hong Kong people have house to live in and will live in better house. Besides accepting Long Term Housing Strategy Steering Committee's suggestion, government presented ten years' target of 470,000 public units, with ratio of public houses to private units in 6:4. Therefore, government will supply 20,000 public houses and 8,000 Home Ownership units each year in the next ten year, up 36% than last year's commitment.

Leung Chun-ying expressed housing lack is the most serious problem. Besides high property price and high rent, the living area of Hong Kong people is small, with over half of the usable area of Hong Kong private houses less than 50 sq meters. He recalled one couple and their three years old girl took picture with him last month when he on street of Mong Kok. He asked this young couple if they would like to have more kids. They immediately replied, " Chief governor, how can we have more children in such a small house?"

Fulfilling the target needs to develop more new land.

He pointed, many young couples do not want kids, work outside, eat outside together and back to each parents' house at night. This made him think about a small kid's question, " Chief governor, where will I live when I grow up?". Leung Chun-ying believed no place to live in is unacceptable, so he emphasized " Target must be fulfilled by plan and ways." The target is Hong Kong people have house to live in and will live in better house, which should be planed in 3-5 years and also in 30 years by developing more new land.

Seeing the situation, government decided to adopt the suggestions from Long Term Housing Strategy Steering Committee, use supply leading policy, continue increase housing supply and emphasize the role of public house. The target for next ten years is 470,000 units with ratios of public houses to private houses in 6:4, which means public houses will be 282,000 units while private houses will be 188,000 units, adjusted from the former ratio of 5:5, and forwardly speed up citizens' purchasing step.

Home Ownership houses will be increased to annual 8,000 units.

To fulfill the target of 280,000 public houses in next ten years, government's Home Ownership house supply will increase from annual 5,000 units to annual 8,000 during 2016/2017, in step rise, making capable public house citizens purchasing Home Ownership unit, while the non-occupied unit can be supplied to basis citizens in need. Sources expressed, the ratio of public houses to private houses still maintain at 6:4 even the Home Ownership units can't up to 8,000 units, and emphasized the new target is made under sufficient consideration of effect to private property market, to assure the private property price will not sharply rise. Government estimated, plus with average annual 20,000 public units and 8,000 Home Ownership units, the public housing supply of in next ten years will up 36% than last year's commitment.

Chief governor pointed, government is developing enough land currently to build the 179,000 public houses and 17,000 Home Ownership units promised in earlier, and each related government departments are trying full best to develop more land in good process.

Policy Address also mentioned, the annual average finished private houses in the past five years were only about 9,680 units, but under government's known initial estimates about private residential projects on going or will start, the average annual finished private houses in the next five years will be about 13,600 units, up by about 40%.
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