Room for change in housing balance

Wallis Wang

The public-private housing ratio could be adjusted in a few years after the average waiting time for public housing has shortened, says Secretary for Development Bernadette Linn Hon-ho.

Linn, speaking on television, said property developers have suggested amid the property price turmoil to adjust the housing ratio, which is currently at 70 percent for public housing and 30 percent for private.

She said the ratio was set up to increase the public housing supply and cut down on the average waiting time for a public rental housing flat.

"The public housing supply in the coming 10 years will meet, or even exceed, our target," Linn said. "Therefore, when the waiting time has shortened a few years later, there would definitely be room to adjust the 7:3 ratio."

She said for some of the new development areas, such as San Tin Technopole and New Territories North New Town, a different ratio is already being considered, including allocating half of the residential land for public housing and the rest for private.

"The Tsim Bei Tsui, Lau Fau Shan and Pak Nai area is planned to be developed as a technology hub, where a lot of talent is supposed to gather," Linn said.

"It would be inappropriate if we adopt the 7:3 ratio for the public-to-private flat supply there."

The government earlier received 11 tenders for a residential site at Siu Lek Yuen in Sha Tin, which was eventually awarded to Sun Hung Kai Properties for HK$619 million - or HK$3,952 per square foot - a 55 percent drop compared to a site in the same district two years ago.

In response, Linn said the land sale was a piece of good news and the price was within market estimations, adding prices are affected by the property market's performance and the government has been level-headed in handling the issue.

She also said the government will not allow developers to pay for the price in phases, which might motivate them to bid for government lands. Payment by installments would affect the cash flow of public money, she added.

Linn said the government will carefully consider whether the capital investment entrant scheme should be expanded to cover property investment, as authorities are required to take care of people's housing needs but such a measure may cause a surge in prices.

On harborfront development, Linn said the government has taken an "incremental approach" to connect different parts of the promenade first before moving to improvement works.

The government will later set up more catering facilities at harborfront sites, she said.

Secretary for Housing Winnie Ho Wing-yin, meanwhile, led a delegation of 16 lawmakers from the Legislative Council panel on housing to visit Zhuhai and Shenzhen for a two-day inspection trip.

"We will first visit a factory that supplies components to the Housing Department's modular integrated construction projects and light public housing projects. We will have the opportunity to inspect the mainland factory's scale, technology and quality management," Ho said before leaving for the Fushan Industrial City in Zhuhai yesterday.

The delegation will also visit the Housing and Construction Bureau of Shenzhen to learn about how public residential estates and facilities are developed using green technologies.

wallis.wang@singtaonewscorp.com