MOTION ON “FURTHER ENHANCING THE HOUSING LADDER”
President, housing has always been one of the most important social and livelihood issues in Hong Kong, and there have been complicated factors over the years, including land supply, population density, housing demand and economic conditions. The Chief Executive’s new Policy Address has put forward several concrete measures to provide suitable assistance to different sectors of the community. I would like to thank Mr Vincent CHENG for proposing this motion so that we can discuss how to review and enhance the housing ladder to enable the people to live in peace.
The shortage and low utilization ratio of land in Hong Kong is the root cause of a series of housing problems, resulting in high prices in the private property market, which in turn lead to high rent and the lack of land for developing public rental housing (“PRH”). Therefore, the Government should continue to adopt the current multi-pronged approach in identifying land for housing, including developing the periphery of country parks and opening up the Frontier Closed Area. As for land production, the Government should be forward-looking, not only to meet the target of the total number of flats as set out in the Long Term Housing Strategy, but also to further consider increasing the per capita living space of all Hong Kong people.
In the past, sub-divided units, caged homes and cubicles were created due to the imbalance in housing supply. Due to the poor living environment of these flats, they are regarded by many as a source of social conflicts in Hong Kong. According to a report by the Census and Statistics Department, about 65 000 young people under the age of 25 are now living in these inadequate housing units, which is believed to be one of the reasons why some young people lack confidence in their future.
I am glad to see that the Chief Executive has proposed in the Policy Address to enact legislation to regulate the sub-divided units, so that they can be converted into compliant “Basic Housing Units” and tenants can “live with dignity”. The overall direction of the Government’s solution to bid farewell to sub-divided units is correct, but the implementation of the policy will directly affect some 240 000 households, so it is necessary to think comprehensively and prudently to prevent landlords from shifting the costs of converting the units to tenants. Besides, for the disadvantaged tenants who are unable to afford the rent of the “Basic Housing Units”, the Government must improve the rehousing policy and expedite the allocation of PRH units to them, or make reasonable transitional housing arrangements to avoid rendering these tenants homeless.
As for the supply of PRH housing, the overall supply of public housing in the next five years will reach 189 000 units, representing an increase of 80% compared to the five years before the current-term Government took office. I believe this is the result of the current-term Government’s effort in identifying land for housing construction and streamlining the process. As long as the Government continues to complement these measures with policies to combat the abuse of PRH, I believe there is hope that the waiting time for PRH will go back to 4.5 years by 2026-2027.
However, in the traditional Chinese mindset, there is always a sentimental attachment to owning one’s own property. In the face of rising construction and management costs, I think it is reasonable for the Administration to consider changing the ratio of subsidized sale flats, PRH units and private housing units from the current 2:5:3 to 3:4:3.
In fact, the Tenants Purchase Scheme (“TPS”) was launched by the Housing Authority in early 1998 to enable PRH tenants to buy their rented units at lower prices, with the intention of facilitating those who are interested in purchasing their own homes to become owners, thereby increasing the overall proportion of Hong Kong people who own properties. Earlier on, I have also urged the Government to strengthen the management of TPS estates and actively sort out the problems brought about by the mixed ownership in the estates. I believe after the enhancement, a re-launch of TPS can make the dream of home ownership come true for some PRH tenants.
In the past, land supply was limited and the Government focused its resources on addressing the needs of the grass roots, resulting in PRH comprising nearly half of the housing supply and the lack of new Home Ownership Scheme (“HOS”) flats being built for as long as 10 years. In addition, the low-interest rate environment has led to rising prices in the private property market. As a result, many people have been unable to buy private housing and are forced to continue to wait for PRH, resulting in an ever-increasing number of people on the Waiting List. However, the resale of HOS flats, which is subject to stringent restrictions such as the resale period and price, has failed to increase market liquidity. The Government should find a balance between promoting market vitality, protecting residents’ interests and making good use of public money, and find ways to revitalize the second-hand HOS market and rationalize the housing ladder. A case in point is the acceptance of the proposal submitted by “G19” Members (of extending the Government’s guarantee period) which has already produced significant results.
As for the private property market, we do not have enough time to discuss it today. However, Mr CHAN Kin-por’s suggestion of extending the mortgage period is only one of the solutions; another mortgage arrangement adopted in foreign countries which requires payment of interest but not the capital may need careful deliberation after study.
The SAR Government has introduced a lot of new housing initiatives to address the housing problem which has not only a bearing on people’s sense of well-being, but also a direct impact on social harmony and stability. The Government should make good use of the existing resources and strive to strengthen the implementation of its policies to ensure that all of them have been put into practice.
President, with these remarks, I support the original motion and all the amendments.