Current Housing Policy

12.     Let me highlight the basic principles of the Government's housing policy.  First, our policy is to ensure that all Hong Kong people have a home.  Second, it is the responsibility of the Government to supply sufficient land for the private sector to build a mix of residential units.  Third, the Government will provide public housing for low-income people who cannot afford private rental accommodation.  When private housing is in short supply and property prices rise to a level beyond people's purchasing power, the Government has to intervene and make adjustments through the provision of additional land and through subsidised housing policy.  The HOS was previously the major subsidised housing scheme.

Challenges Ahead

13.     After reviewing the market situation and listening to the views of different sectors, I have identified the following problems with our housing market.

Maintaining Public Rental Housing Production

14.     We face two major challenges in maintaining an average production of 15 000 PRH units a year.  The first is a shortage of land.  Both PRH and private housing require land.  To achieve our PRH production target, we need to open up new sites and explore ways to appropriately increase the densities and plot ratios of PRH projects without compromising the living environment.  The second challenge is the objection of some local communities to PRH development.  In my view, these objections are prejudiced and not in the public interest.

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