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Following is the statement delivered by the Chief Executive, Mr Tung Chee Hwa, today (July 5):

Recently, there has been quite a lot of reporting on the question of housing policy. I wish to take this opportunity to restate the Government's position.

When the Hong Kong Special Administrative Region was established in 1997, property prices were standing at an all time high. In announcing the target of producing 85,000 flats annually in my 1997 Policy Address, I was setting a long-term housing construction target. The objective was to increase supply to bring housing prices down to a more affordable level for Hong Kong people and to provide public housing to those in need. However, as Hong Kong was affected by the Asian financial turmoil, property prices fell sharply. Due to significant changes in the environment and market demand, in the 1998 Policy Address I set the following objectives :

(1) to continue to provide public rental housing to families in genuine need;

(2) to maintain flexibility in production and sale of the Home Ownership Scheme flat sales;

(3) to maintain stability in the property market.

Due to the significant changes in the economic environment in 1997 and 1998, the measures for supplying housing units were adjusted in the 1998 Policy Address. As a result, the target of constructing 85,000 flats no longer exists.

On private housing, since 1998 the HKSAR Government has adopted a range of measures to maintain stability in the property market.

As for public housing, the Housing Authority will continue to provide at least 50,000 housing assistance opportunities for eligible families per annum. The Housing Authority has proposed to transfer some HOS flats for rental use and to reduce waiting time for public rental housing applicants to three years by 2003. As an alternative to Home Ownership Scheme flats, it will also provide loan finance to assist eligible families to purchase homes from the private sector.

I understand that the public is very concerned about housing matters. I hope that the above explanation will help everyone gain a clear understanding. Henceforth, our housing measures will be focussed on the three objectives set out above.

End/Wednesday, July 5, 2000

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