long term housing strategy 2013

7/28/2019 Long Term Housing Strategy 2013

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Long Term Ho

Building Consensu


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TABLE OF CONTENTS

FOREWORD

EXECUTIVE SUMMARY

CHAPTER1 BACKGROUND


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MEASURES TO MAXIMIZE

RENTAL HOUSING RESOUR

Latest Position of the P

CHAPTER6

Review of Public Rent

ROLE OF VARIOUS HOUSINCHAPTER7


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ANNEXES

ANNEXA Membership of the Long

Committee

ANNEXB Membership of the Long

Group

ANNEXC Key Initiatives to Impr


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Hong Kong used to have

in. The resettlement housing and

1960s, and the public housing pro

improved the living condition of m

extensive urban land previously oc

the development of new towns. T

for the social and economic devel

about a virtuous cycle of upward so


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multi-pronged approach to resolve

of priority. It aims to break throu

way for a new chapter in housing d

Entitled Building Co

consultation document seeks to b

adequate and affordable housing

Kong public rental housing (P


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prevailing policies and changes in

conditions. At present, the Stee

total housing supply should rang

the next ten years, and that the m

adopted as the supply target.

takes time to make new land availa

a great challenge for the Governm

every opportunity to increase hous


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actions against illegal SDUs whic

safety regulations. It also propo

licensing or registration system t

suggestion that transitional housin

vacant sites for the inadequately

subject to constraints in terms of

and relevant support in transport

with regard to the actual circumstan


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facilities and public space is v

environment. A balanced and h

adopted for the development of new

industrial, commercial and comm

employment opportunities so as to

traffic. Furthermore, in dealing

should not confine ourselves to a

should also consider how to pro


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EXECUTIVE SUMMARY

An Overview of our Housing Pro

Housing tops the list of l

concern, and is widely recognized a

The Government formed the Lon

Committee (the Steering Commi


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The Vision for Our Long Term H

3. According to the 2013 Phousing policy objectives are to: (a

public housing to meet their basic h

choose accommodation according

circumstances, and encourage those

own homes; (c) provide subsidized


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6. Taking into account all thenet increase in the number of ho

displaced by redevelopment, house

and other factors (such as non-loca

Hong Kong who may purchase flats

to the market etc.), the estimated

projection period from 2013-14 to

420 150 units to 479 250 units, with


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The Elderly

10. The Hong Kong Housing Alow-income elderly, and addresses

such as adopting universal design pr

The Steering Committee recommen

provide affordable rental housing

elderly people, and to continue to


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14. The Steering Committee reenhanced by increasing the annual PQPS. The Steering Committee

points to applicants above the age o

40 and then over 35 with a view to

PRH. The Steering Committee als

given to setting out a roadmap to


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17. The Steering Committee strengthened the inspection and

buildings. As for SDUs in domGovernment has taken enforcem

Ordinance (Cap. 123). The Steerin

to further step up its enforcement ac

considers that the introduction of

system for SDUs in domestic and c


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would be difficult to allocate top pr

for the time being. Nevertheless,

that the Government should instill iin the future by demonstrating its de

housing problem, and establish a

promotes upward mobility. Given

for upward mobility (especially tho

education), increasing the supply of


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(a) Relaunching the Home Staacute housing supply situ

scheme will only be counprices, and thus should not

(b) relaunching the TenantGovernment should not re

to tenants will inevitably a


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were aged 35 or below, nearly

education attainment. Since those

would most likely earn an income egraduation, and as the limited P

reserved for people with relativel

Steering Committee recommends

review the income and assets of QP

reviews with a view to removing ap


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28. The number of overcrowdebut has dropped to 3 200 as at Mar

appreciates the HAs efforts to imtenants by providing transfer oppor

The Steering Committee considers

relax the existing overcrowding

conditions of existing PRH hous

limited PRH resources at the expens


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Hong Kong Housing Society

32. The mission of the HS is tocommunity in housing and related se

HS has been involved in various

provision of public rental units and

projects. It has also taken on the

out innovative housing schemes, inc


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community concerns, but at the sam

and serious land supply problem

Government has secured sufficient lhousing demand in the next three to

challenges in the medium and lon

target recommended by the Stee

community cannot reach consensus

long term housing supply in Hong K


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decade, or three new towns roughly

Bearing in mind past experience in w

new town development because tooresidential development, the Steerin

towns in future should generall

communities and in an integrated m

to flourish. It also considers that th

consider relocating some non-resid


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43. Please send us your viewsfacsimile on or before 2 December 2

By email : [email protected]

By post : Secretariat, L

Steering Com


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Chapter 1

BACKGROUND

1.1 Housing tops the list of lconcern, and is widely

stable society. As clear


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The Steering Commi

inter-departmental Wor

Permanent Secretary for The membership lists of

Working Group are set

respectively.

1 3 The Steering Committee


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three-month period from

The objective of the surv

SDUs in the territory aprofile of tenants living th

Steering Committee with

its assessment on the lon

Kong. The report of th

Hong Kong is availabl


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Chapter 2

AN OVERVIEW OF OURHOU

2.1 This Chapter reviews thehousing policy and gives asituation.


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ownership rate had increas

in 1971 to about 52% in 19

in the private housing matowards wealth creation.

was mounting concern abo

community as prices reach


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Tenants Purchase Scheme

The TPS was launched in 1998

buy their units at a significant prices of TPS flats are set Replacement Cost, under which current cost of replacing it, with aand other relevant factors. On further discount from the list pric


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maintaining that the overarfor families in need should

of HOS flats ceased from flats was also halted. Onearlier increase in PRH target for PRH was achievthe original schedule.


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Chart 2.1 Residential property

180

200

220

Index (1999 = 100)


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a bid to overcome the imreinvigorate their econom

liquidity and low interest demand for residential proinvestors. The residentiaon an almost uninterruptesoaring by 117% between2012.


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2.13 By the time the current-ter2012, Hong Kong was c

problem characterized by

(a) Severe supply-demanprivate housing botfaced the problem of leading to higher pric


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Chart 2.2 Number of residenti

ten years

26036 1732135000

40000

45000

50000


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Chart 2.3 Affordability ratio (

40%

50%

60%


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Table 2.1 Average annual gr

household, 1996 to 2

Total

Population

(Mid-yearHouseho

(From the pop


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considers that the Governpay attention to the po

implementation of policadjustments where necescircumstances.


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Chapter 3

THE VISION FOROUR

LONG TERM HOUSING STRA

Housing Policy Objectives


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The Long Term Housing Vision

3.3 The Steering Committee hadevelopment and current s

and has come to the view t

its previous housing strate

objectives. Specifically


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1 157 7001

by end Ma

44%2

of all units wit

Chart 3.1). Meanwhwere living in public

than half (46%) of

Given the current su

persistent decline in

case for the Govern


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3.4 Taking the above consideCommittee recommends

strategy (LTHS) for the cupon the vision of prov

housing to the peop

re-establishing a housing

mobility.


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situation in the housing m

built up over many year

resolve the deep-rooted supThe ultimate aim must be

management to the devel

policies which can resol

proactive and pragmatic m

overcome the challenges


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infrastructure and the actu

these challenges, the Chief

commitment to (a) increproduction target of at leas

years starting from 2018; (

four years starting from 2

annual average of 5 000

supply of housing land in


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(c) measures to maximizeto ensure that scarce

those who are genuine

(d) consideration as to whagents (including the

Authority and the priv

adequate housing to


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Chapter 4

PROJECTION OF LONG TERM H

4.1 In order to formulate the Lon

Steering Committee has rev

housing demand. This

h d l d l f


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Therefore, the Steering Com

fixed target, a range of proje

possible housing demand s

and property market situchanges in the basic housing

household formation. Fo

projection would have to be

policies on the average waitin

(PRH) or the Quota and Point


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4.7 This being the case, only th

count towards the number of n

(a) net increase in the numbe(b) those who will be displac(c) those who are inadequate


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Question 2

Do you have any views o

adopted for projecting the lon

Projection of Housing Demand


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factors including the ageing p

increasing number of one-pe

and longer life expectancy a

taken into account factors afresidents such as Hong Kon

Mainland; Type I babies (wh

residents and whose mothers

parents are both non-Hong K

Permit Holders settling in H


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vacancy rate would be 1% poi

4.15 The results of the economet

number of household formato 316 050, depending on

market situations. This rep

domestic household projecti

ten-year projection period (o

Steering Committee agrees


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Table 4.1 New housing deman

redevelopment

Redevelopment progra

(i) Redevelopment of PRH4The HAs redevelopment of Pak Tin E

The HAs interim housing units to be


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(c) Inadequately Housed Households

4.17 As the objective of the projec

to estimate the number of u

adequate accommodation in H

currently inadequately housed

housing units, either in publi

widely accepted definition


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cubicles, bedspaces and c

buildings). Following the

these households should be

households (IHHs).

4.20 With regard to households

according to the results of the

Kong (SDU Survey) commi

is estimated that there are a t


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comprehensive survey and is

Survey (i.e. 7 900 households

conservative approach and

Population Census (i.e. 11 100the SDU Survey (i.e. 7 90

projecting housing demand.

4.23 For the figures in paragraph 4

not available in the 2011 Po


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Table 4.2 Estimated number

Category of IHH

(i) Households living in units

of temporary structures (e.

squatters and roof-top struc

(ii) Households living in non r


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Question 3

Do you have any views on

inadequately housed?

(d)Miscellaneous

4 26 A f h b i


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students per year needing

the private housing ma

average two non-local st

the estimated housing deyear; and

(c) apart from the demand fr

some buyers from outsid

but without channelling


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Gross Total Housing Demand and To

4.29 In gist, it is estimated that the

households in the projection pof 316 050 and 271 950 re

displaced by redevelopment,

46 300 households displaced

period. On IHHs, it is estim

Kong is 74 900 As for the


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average vacancy rate in the pr

5.2%) as the basis for estima

of gross total housing demand

situation of private flats, we pthe next ten years should ra

units, with a proposed

(mid-point). Details are sum

Ch t 4 1 G t t l h i


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4.32 The Steering Committee cons

needs one adequate housing

housing need is satisfied by

(regardless of whether it is PRlonger need another unit in

Within the public housing se

part of the demand for privat

Home Ownership Scheme (H

the Governments housing po


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4.35 Taking into account the abov

the limitations of the pro

Committee further recomm

demand projection be updain policies or circumstances

deriving an appropriate hou

Question 5


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Chapter 5

HOUSING NEEDS OFSPECIFIC GROUPS IN THE C

5.1 Given limited land and ho


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Table 5.1 Change in ag

Age Group2001

0-14 16.5%

15-24 13.7%

25-44 36.8%


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Housing Schemes for the Elderly

Single Elderly Persons Priority

priority processing over the ap

would be accorded to elderly o

wish to live alone. The elderly

age or above, and must have atta

flat allocation The HAs curren


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physiotherapist. These m

by and large, the mobilit

within the estates are more

5.6 In terms of the provision facilities for the elderly, pu

consultation with relevan

Welfare Department (SW


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payment thereafter. Duri

to pay management fees

management and basic car

optional services provided

basis. The two SEN dev

and Jordan Valley respecti

flats. The Joyous Living

designed for elderly aged


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Unless private elderly

and operated on a

developers own resou

a drain on land resourc

for the development

potential costs involve

scarce land resources,

that there is a need to


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and meals delivery serv

population, the Steering Co

and Welfare Bureau to c

such services can be furthe

5.11 In addition, the Steering Kong Planning Standards

certain guidelines on the


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Question 6

Should the Governme

development of elderly hohigh-income elderly as

community? If so, what so


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5.14 Under the QPS, points arethe following three determi

(a) Age at the time of appto applicants aged 18those aged 19, six poin

(b) PRH residency : for apfamilies in PRH 30 po


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5.17 The Steering Committeerefined by increasing the

at 8% of total PRH unit

applicants, subject to a cap

the QPS, and by allocatin

age of 45 with a view to

earlier access to PRH, a

award of additional point


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Inadequately Housed Househo

5.20 The Steering Committee accorded to addressing the

regard, their housing nee

account in the long term


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5.22 Since rental is one of particularly for those living

recommends that PRH

solution for eligible hou

revealed in the SDU Surv

to live in SDUs for va

convenience of location an

space and some household


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accommodation at the Po

Affected households who h

three months and passed

fulfilling the eligibility cri

Interim Housing under th

through the WL system.

5 24 Some Steering Committ


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Question 11

What are your views on t

or landlord registrationresidential and composite


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(a) Non-owner occupiedthe cumulative increa

these households was

($21,400), while the ov

Even though the medi

households in 2011 w

households in Hong K

had risen faster than th


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5.29 On the other hand, the Semployment income of y

higher than that of the

instance, for those youngattained education level at

monthly income from ma

2011, which was higher th

$11 000 for the entire work


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5.32 As at the fourth quarterpersons or above earning

earning up to $20,000 (i.e.

flats and the HSs subsidVilla) represent some 64%

households in Hong Ko

therefore supports the Go

development of HOS a


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5.33 The Government has pledgflats in total over the four

thereafter an annual avera

batch of some 2 100 new H2016 and pre-sale is curren

Steering Committee reco

should be proactive in i

more HOS units on top


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needs, the Steering Co

minimum income/asset

applicants for future s

subsidized home ownershpeople from making home

out of their affordability, a

chance for individuals wh

buying properties with th


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purchase their own ho

Committee has come to

current acute housing

government loan schemeand have the effect of p

the then HSLS was intr

downturn and coincided

which severely undermine


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5.43 However, as rental contSteering Committee co

should be cautious. Re

imposition of statutory limincrement allowable upon

categories of residential u

measures may appear to b

the measure mainly targets


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Question 14

There are divergent views

the following schemes:

financial assistance to f

providing rent subsidy

(including control on rent

your opinion?


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Chapter 6

MEASURES TO

MAXIMIZE

PUBLIC RENTAL HOUSING R

6.1 Public rental housing (PR


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6.4 As at 30 June 2013, thapplicants and 115 600 under the QPS on the WL

applicants and elderly onand 1.5 years respectively

6.5 The Steering Committee ifaced by the HA in main


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6.8 The Steering Committee WL who are aged 35 ochance of upward mobil

registered when they werearn an income exceedgraduation. The Steerinlimited PRH resources

people with relatively


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Table 6.1 Subsidy Income Lim

from 1 April 2013

Subsidy

(with

Household SizeHouseholds

income in the f


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Table 6.2 Income and net ass

effect from 1 April 20

Household Size

Income L

(per mon

(three times theWL Income


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their names from thetenants), while leavithe PRH units.

Governments policya family to look after

(b) tightening up the Wedrive tenants to th


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example, the HA reserveseach sales exercise for Galso given priority in fl

Form applicants may puryet paid in the HOS account all the relevantMembers consider that th

be maintained, but recom


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increasing number of PRH

6.15 The existing under-occup6.3 below. Neverthelestep-by-step approach under-occupation cases w

prescribed standards, (i.eand 68 m2 for two-perso


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resources and therefore crecently endorsed by thecases, which will tak

Specifically, the prioritizone-person households wii.e. a 20% allowance under-occupation standarrevised thresholds for diff


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Question 17

What are your views on t

further enhance its undeincentives for under-occup

flats on the one hand, a

under-occupation cases on


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opportunities to overcrow

end March 2013, the ave

PRH estates was 13 m2.

that in some cases, the othe HAs offer for transfe

places of work and stud

further relax the existing

Committee considers t


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commenced in January Meter Readings Operatiosecurity guards. The HD

investigation into some 9consumption under the O2013, some 1 100 PRH fthis initiative.


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Ch t 7


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Chapter 7

ROLE OF VARIOUS HOUSING

The Private Sector

7.1 The private sector has ahousing in Hong Kong. A


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Hong Kong Housing Authority

7.6 The HA was establisheOrdinance (Cap. 283). Ithousing to meet the needs

private rental housing. public rental housing (March 2013, about 710


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of subsidized sale project(FFSS) and the Sandwich Cwell as providing various hlow to middle-income ownership. As at today, estates, and has developedthe SCHS. As at end Marwith a total population of 8

4


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role in the provision of suthe Steering Committee reshould continue to grant

latters housing projects s

Urban Renewal Authority

7.12 The URA was establish


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7.15 Apart from being an ifacilitator role under th

buildings which have mult

redevelopment. The URAto undertake related work(Pilot Scheme). Since tJuly 2011, the company hthe qualified applications h


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medium-sized flats to cater

7.18 Urban renewal is integral tof the public. The Steerithe URA be invited to ex

role in the provision o

middle-income household

of small and medium-size


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endeavours to streamline approval processes.

7.22 For instance, the Planpromulgated a Practice N4/2005, setting out guidelinenquiries and discuss therelevant government depa


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at this stage to within one the tender and constructimprovements in the constuse of pre-cast building techas already been streamlinwords, the total productseven years in the past, havyears where possible in


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2009 (i.e. after the financiaquarter of 2013, which w10.2% for the past ten yeathe other hand, based on Construction Industry Couvalue of construction wconstruction projects and 25:75 in 2007-08. In 20


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construction industry increconducted before the launcBuild Up in early 2011conducted in December 20

7.28 In the long term, the forelargely met through a thrre-training of local work


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Chapter 8


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Chapter 8

MEASURES TO INCREASE H

Overview

8.1 As mentioned in earlier problem lies with the

i id i l b ildi


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rise residential buildings o

8.4 The Steering Committeconcern about these issu

most conscious of the p

problems facing Hong K

provided sufficient land t

private housing demand f


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th


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the area.

8.8 To enhance flat productiapproval from the Town

residential development taking into account the

For example, the plot rat

Fo Tan PRH projects as w

d f h i d


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are used for housing deve

had been zoned or wer

procedures for rezoning

2013. The PlanD will

rezoning of the remaini

continue to look for othe

may have potential for re

demand in the community

ll h 13 i d


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all the 13 sites are dev

remaining three private

estimated that some 5 80

them are developed or

examining the possibility

to other uses, includi

commenced another revi

which is expected to be co

f it bl d ti


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of suitable decanting re

Pak Tin Estate was anno

The HA will achieve a

production upon redeve

Estates of about 1 700 fla

respectively.

8.15 Taking into account

h d ith l ti


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ahead with reclamation

endeavouring to keep th

marine ecology to a minim

selection criteria formu

engagement, the Civil

Department (CEDD) has

reclamation sites3

for f

provide a total of abou

M j D l A


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Major Development Areas

New Development Areas

8.21 NDAs are a major sourcterm housing needs, as w

development needs of Ho

come on stream and be


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come on stream and be

2022-23 onwards.

Review of Deserted Agricultural

Long

8.25 To make more gainful ucurrently used mainly fo

engagement commenced


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engagement commenced

21 July 2013. Accordin

the Livable Town opti

option for Tung Chung

and 33 000 residential flaWest could provide arou

entire study is anticipat

addition, the Government


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Question 22

In your opinion, how sh

balance between developm

your views on the varioussupply as set out in this ch


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Line Extension and the S


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Line Extension and the S

land parcels that were on

adjacent to the extended

potential for further deve

Committee considers thmindful of the lessons le

new towns (such as T

Owing to the developme

9 5 Notwithstanding the abo


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9.5 Notwithstanding the abo

the view that in the lo

consider relocating som

as large-scale industrial

view to releasing the devareas for housing

Committee understands t

highly complex and cons

manner members of the


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manner, members of the

accept that in order to

environment, they may

conventional urban distri

concerned, the Steeringsubject to the provision

housing (PRH) develop

Housing Authority can


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Chapter 10


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Chapter 10

SHARE YOURVIEWS

10.1 This consultation docuCommittees considerati

id f i T

(f) Question 6 : Shou


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( ) Q

support the developm

the middle and high

some in the commu

should be given? (Ch

(g) Question 7 : Wrecommendation for

(l) Question 12 : W


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( ) Q

recommendation to

each Home Owne

singletons? (Chapter

(m) Question 13 : Wrecommendation to s

for White Form appl

under-occupied hous


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p

the one hand, and

under-occupation cas

(r) Question 18 : Whpriority between allo

and further relaxin

overcrowded PRH

By email : [email protected]


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y @ g

By post : Secretariat,

Steering Co

1/F, Block 2Housing Au

33 Fat Kwo

Ho Man Tin

10.7 To safeguard data privac


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g p

which submit their views

such as residential/retu

identity card numbers,

numbers and signatures, their submissions.


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LONGTERMHOUSINGSTRAT

MEMBE

Chairman: Secretary for Transpor


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LONGTERMHOUSING S

MEM


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KEY INITIATIVES TO IMPRO

TERM HOUSING SITUATION

I. Housing and Related Land


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II. Demand-side Management


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8. In response to the continuo

property market, the Governmen

management measures on 26 Octobextend the holding period for the Sp

Buyers Stamp Duty on residentia

except for a Hong Kong Permanen


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LIST OF ABB


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AWT Average w

BD Buildings

C&SD Census an

CEDD Civil Engi

HSP Housing S


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HSP Housing S

IHH Inadequate

IFA Internal flo

Interim Scheme Extending

Market to

SDU Survey Survey on


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SDU Survey Survey on

SEN Senior Cit

SRA Policy on Housing R

SSD Special St


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LIST OF CHART


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Charts

Chart 2 1 Residential property price ind


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Table 6.1 Subsidy Income Limits under

effect from 1 April 2013

Table 6.2 Income and net assets limits u

Rational Use of Public Hous

April 2013


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long term housing strategy 2013

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