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Since 1978, over 422 0005 subsidised sale flats have been sold to households
of eligible families/persons at discounted prices under the Government's
various subsidised home ownership schemes. Among these were the HOS, the
PSPS and the Tenants Purchase Scheme (TPS) under the HKHA. Given the significant
changes in the economy and property market over the past few years, the
Government believes that home ownership should essentially be a matter
of personal choice and affordability. In this respect, the Government
has come to the view that it should withdraw from its previous role as
direct housing provider and refrain from competing with the private residential
market. Furthermore, it should facilitate eligible families/persons to
become home owners through the more flexible and well tested means of
loans. Accordingly, the HKHA has decided that, with the exception of a
limited number of unsold and returned HOS/PSPS flats to be sold to Green
Form applicants, the production and sale of HOS/PSPS flats would cease
indefinitely from 2003 onwards, and the TPS would halt following the sale
of the TPS Phase 6. In November 2003, the HKHA further accepted the Government's
proposal for not putting up the above unsold and returned HOS/PSPS flats
for sale before the end of 2006 in order to give a clear signal of the
determination to minimise the Government's intervention in the property
market.
Following the withdrawal from the direct provision of subsidised sale
flats, the HALS has become the principal means for offering assistance
to eligible families/persons aspiring to become home owners. The HALS,
with a quota of 10 000 for 2003-04 equally split between
White and Green Form applicants, provides home purchase assistance towards
down payment and related expenses, in the form of an interest-free loan
or monthly mortgage subsidy6, to those who cannot afford to buy a reasonable
flat in the private market.
The HKHA will conduct a review of the future of the
HALS in the light of enhanced affordability of eligible HALS applicants
as a result of availability of competitive mortgage loans in the market
and the downward adjustment of property prices since the HALS was conceptualised.
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5 |
Of the 422 000 flats sold since 1978, 46 900 flats
can be traded in the open market as at-end December 2003. These
flats are not counted as subsidised sale flats under the current
definition. |
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6 |
The three forms of financial assistance available under
HALS are as follows — |
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Family rate |
Singleton rate |
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(1) |
Basic loan repayable over 20 years |
$390,000 |
$195,000 |
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(2) |
Higher loan repayable over 13 years |
$530,000 |
$265,000 |
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(3) |
Monthly mortgage subsidy for 48 months |
$3,800 |
$1,900 |
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