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Following is the opening remarks by the Secretary for Transport and Housing, Professor Anthony Cheung Bing-leung, at a press conference today (January 17) on the 2014 Policy Address relating to housing development:
I will now give a summary of what I have just said in English.
Housing is an issue of utmost concern to the general public and tops the Government's agenda. Our housing problem is a complex one characterised by a supply-demand imbalance, surging property prices and rents beyond the affordability of the general public, as well as a proliferation of inadequately housed households, including some living in subdivided units.
We do not underestimate the seriousness of the housing problem. Equally, we do not consider that the problem can be totally resolved within a short time frame. However, we are determined and have the strategy to tackle the problem.
During the past year, the Government tackled the problem from both the demand-management and supply perspectives.
On demand management, the Government introduced the Buyer's Stamp Duty and the enhanced Special Stamp Duty in October 2012, and announced the increase of ad valorem stamp duty for properties in February last year. As a result of these measures, the property market has cooled down in recent months.
On the supply side, the Government has already identified sufficient land to provide a total of 179 000 public rental housing units over 10 years from 2012-13 to 2021-22, and for about 17 000 new HOS (Home Ownership Scheme) flats over the four years starting from 2016-17. These numbers will now be increased.
During the three-month public consultation on the Long Term Housing Strategy (LTHS), which ended in early December last year, there was wide public support for the recommendation made by the Long Term Housing Strategy Steering Committee (Steering Committee) that the Government should adopt a supply-led strategy to resolve the supply-demand imbalance in the long run, and to strengthen the role of public housing.
Although the final report of the Steering Committee will only be submitted to the Government in mid-February, the Chief Executive has decided to accept in advance the Steering Committee's recommendation to adopt the new total housing supply target of 470 000 units for the coming 10 years, with public housing (including public rental housing and HOS) taking up 60 per cent of this target.
Within public housing, the Government aims to provide an average of about 20 000 public rental housing units and about 8 000 HOS units per annum over the 10-year period, i.e. a total of 280 000 public housing units. This would mean that the supply of public housing will increase by 36 per cent compared to the previous supply target.
The impact of our supply-led strategy will be increasingly felt as we proceed into future years. The increase in HOS supply will also address the home ownership aspirations of our young middle-class.
Since the construction programme of some 80 000 public housing units in the coming five years is already set, the scope for further increase in production within this period is practically limited. We have therefore to vastly expand housing production in the following five years in order to meet the new supply target. The resulting production level of 200 000 public housing units in the second five-year period will be 2.5 times that of the current five-year period. This would be a huge challenge for both the Government and the community.
Finally, the Government will take full account of the consultation report to be submitted by the Long Term Housing Strategy Steering Committee in formulating the Government's Long Term Housing Strategy, which will be announced later this year.
Ends/Friday, January 17, 2014
Issued at HKT 20:12
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