LCQ17: Production volume and completion date of PRH and HOS courts
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     Following is a question by the Hon Wu Chi-wai and a written reply by the Acting Secretary for Transport and Housing, Mr Yau Shing-mu, in the Legislative Council today (October 22):

Question:

     It has been reported that the flat in-take of Kai Ching Estate and Tak Long Estate in the Kai Tak Development Area has been postponed due to construction delays. According to the information provided by the Housing Department to the Kwun Tong District Council in July this year, the forecast completion date of the Lower Ngau Tau Kok Phase 2 project under construction has also been postponed from the second quarter to the third quarter of next year. Regarding the construction of public rental housing (PRH) estates and Home Ownership Scheme (HOS) courts by the Hong Kong Housing Authority (HA), will the Government inform this Council:

(1) of the information on the PRH and HOS projects completed in the past three years and the current year, including: (i) the names of the projects, (ii) the numbers of flats provided, (iii) the commencement dates of the works, (iv) the completion dates as forecast when the works commenced, (v) the actual completion dates, (vi) time lags between the forecast and actual completion dates, (vii) the reasons for project delays (if applicable), (viii) the expenditures as forecast when the works commenced, (ix) the final expenditures, and (x) whether the project expenditures were met by public money other than the reserves of HA, and set out such information in Table 1;

(2) of the information on the PRH and HOS projects commenced in the past three years but not yet completed up till now, including: (i) the names of the projects, (ii) the numbers of flats to be provided, (iii) the commencement dates of the works, (iv) the completion dates as forecast when the works commenced, (v) the expenditures as forecast when the works commenced, and (vi) whether the project expenditures will be met by public money other than the reserves of HA, and set out such information in Table 2;

(3) of the information on the PRH and HOS projects the construction works of which will commence in the coming 18 months or for which tender is being invited, including: (i) the locations of the projects, (ii) the areas of the sites, (iii) the numbers of flats to be provided, (iv) the forecast commencement dates of works, (v) the forecast completion dates of works, (vi) the forecast project expenditures, and (vii) whether the project expenditures will be met by public money other than the reserves of HA, and set out such information in Table 3;

(4) of the respective differences between the forecast and actual volumes of PRH production in each of the past three years; given that in December last year, the authorities has briefed the Panel on Housing of this Council on the completion of PRH estates and HOS courts in the coming five years (i.e. from 2013-2014 to 2017-2018) (including the projects to be completed, the number of flats available and the completion dates), whether it has assessed whether the situation has changed so far; and

(5) whether it has compiled statistics on the average time taken to complete the various stages of PRH projects (including planning and construction) in the past five years, and whether there has been an upward trend in such time spent; apart from those measures for stabilising the supply of PRH and HOS flats as mentioned by the authorities to the Panel on Housing in December last year, whether the authorities have adopted other new measures to shorten the time required for completing the respective stages?

Reply:

President,

     The objective of the Government's housing policy is to provide subsidised public housing to eligible families, in particular, to provide public rental housing (PRH) to low-income families who cannot afford private rental accommodation. Meanwhile, the Home Ownership Scheme (HOS) is a standing feature of our housing policy. It aims to facilitate low- to middle-income groups to achieve their aspirations for home ownership and establish an effective housing ladder. The Government has accepted the recommendations of the Long Term Housing Strategy Steering Committee to adopt the total housing supply target of 470 000 units for the coming 10 years, with public housing accounting for 60 per cent of the production i.e. an average of about 20 000 PRH units and about 8 000 HOS units per annum.  

     As a financially autonomous public body, the Hong Kong Housing Authority (HA) funds the public housing construction programmes with its own resources. As the production of PRH involves a number of factors such as planning, construction and resource allocation, the HA has put in place the 5-year Public Housing Construction Programme (PHCP), which rolls forward on a yearly basis and will adjust the housing supply with reference to the housing demand. The Housing Department, as the executive arm of the HA, would report to the HA on a regular basis the construction costs, expenditure and progress, etc. in relation to public housing development projects. In addition, the Government's expenses under the Capital Works Reserve Fund are for the implementation of housing-related infrastructural and community facility projects.

     My reply to the Hon Wu Chi-wai's question is as follows:

(1) The relevant information about the PRH projects completed in the past three years is set out in Table IV. There was no HOS project completed during the concerned period.

(2) The relevant information about the PRH and HOS projects commenced in the past three years but not yet completed up till now is set out in Table V.

(3) The relevant information about the PRH and HOS projects with construction works to commence in the coming 18 months or with tenders being invited is set out in Table VI.

(4) In the past three years (i.e. 2011/12 to 2013/14), there is little difference between the actual PRH production volume and the estimated PRH production volume of the HA. On January 3, 2011, the Transport and Housing Bureau (THB) reported to the Legislative Council Panel on Housing (the Panel) that the estimated production of 2011/12 was about 11 200 units (vide LC Paper No. CB(1)891/10-11(05)) whereas the actual production was 11 186 units. On February 8, 2013, THB reported to the Panel that the estimated production of 2012/13 was about 13 100 units (vide LC Paper No. CB(1)516/12-13(05)) whereas the actual production was 13 114 units. On December 2, 2013, THB reported to the Panel that the estimated production of 2013/14 was about 14 100 units (vide LC Paper No. CB(1)411/13-14(03)) whereas the actual production was 14 057 units.

     THB briefed the Panel on the PHCP from 2013/14 to 2017/18 in December 2013 (please refer to LC Paper No. CB(1)411/13-14(03) for details). According to the HA's latest PHCP, the estimated number of project completion, number of units and the completion dates for HOS projects from 2013/14 to 2017/18 remain unchanged. As for PRH projects, the estimated PRH production was reduced by 2 900 units with the estimated completion dates of two projects changed from 2017/18 to 2018/19. The PHCP is a dynamic exercise subject to adjustment in light of the actual situation. Progress of individual project will also change in response to the circumstances. The HA will closely monitor the progress of the PHCP and review the programme on a regular basis.

(5) The average lead time of a typical public housing development with 40-storey domestic block(s) sitting on ground (i.e. without podium or basement) takes around seven years, including around three years for planning and design stage (technical studies, public consultation, preparation of planning brief and design), half a year for tendering, one year for the construction of foundation as well as two and a half years for the construction of superstructure. The lead time may be longer if there are complicated matters in land, planning, public consultation, ground condition, environmental and engineering aspects.

     The time required to complete a 40-storey public housing block on "spade ready" sites (i.e. sites which have been properly zoned for residential use, and sites which are resumed, cleared and formed, with adequate provision of infrastructure) is about five years starting from the planning stage, including one year for the fast-track planning and design stage, half a year for tendering, as well as three and a half years for foundation and construction works. On the conditions that quality and site safety would not be compromised, in relation to the tendering and construction processes, the HA has been streamlining the administrative procedures, and bringing in advanced building technology and equipment, including to proactively explore the extended use of prefabricated components, and to procure those building materials and components that are more ready to use, so that less assembly time and construction workers are required. As a result, construction time could be shortened.

Ends/Wednesday, October 22, 2014
Issued at HKT 14:01

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