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      HK govt unveils new measures to push down house prices

      2012-08-31 09:13 Xinhua     Web Editor: Wang Fan comment

      Hong Kong Chief Executive CY Leung unveiled 10 new measures to expedite the sale of subsidized and private residential units to meet public demand, including switching the rent-to-buy scheme to direct sale.

      Leung, together with Secretary for Transport & Housing Anthony Cheung and Secretary for Development Paul Chan, announced the measures at a press conference on Thursday.

      Leung said the government is very concerned about the recent surge in property prices, and he hopes the measures meet public aspirations.

      Under the new measures, The My Home Purchase Plan will be amended by changing the rent-to-buy scheme, to sell the first batch of 1,000 flats in Tsing Yi directly. The flats will be available early next year, and families who earn 40,000 HK dollars (5,155 U.S. dollars) or less a month will be eligible to apply. Another 830 unsold Home Ownership Scheme flats, including 825 in Tin Shui Wai, will also be sold early next year.

      A total of 2,650 private flats will be sold in the Government Land Sale Program (October-December) and the government will increase residential land if necessary.On the supply of private flats, Hong Kong Lands Department will expedite pre-sale approval applications for incomplete flats to meet market demand and 65,000 residential units will be provided in the next three to four years.

      Leung also said that the government will convert the Chai Wan Industrial Building into 180 public rental units from the middle of next year.

      A total of 480 units under the Urban Renewal Authority's Kai Tak unit exchange program will be allocated to the Housing Authority to develop Home Ownership Scheme flats for completion in 2017.

      Other medium-term measures include converting an open space in Cheung Sha Wan to build 2,300 public rental units.

      Leung said 36 government, institution, and community sites will be rezoned to provide 11,900 public and private flats.

      A two-tier structure will be immediately formed to review Hong Kong's long term housing strategy with Prof. Cheung chairing a steering committee. An inter-departmental working group will be established under the committee. The working group will convene its first meeting on Sept. 5, while the committee will start their work in early October. The report and consultation paper will be published next year.

      Leung reiterated the Government's stance of "Hong Kong land for Hong Kong people," adding he has instructed the Lands Department and the Department of Justice to study the issue.

      He said the Government will closely monitor the property market and implement further measures when necessary. He added the risk in property investment is high and the public should assess risk and affordability before buying.

       

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