Secretary for Transport and Public Works (SOPT) Lau Si Io said that the government is not only going to implement the first-phase construction project of 7,000 public residential units by the end of this year but will also endeavour to increase the number of public houses and land reserve at its disposal through land exchange and the reconstruction of old communities with low housing density. In addition to ensuring that by the end of 2010 some 19,000 public residences will be available, the government has plans for an additional 4,000 public residences to be built. The secretary emphasised, however, that the government is not going to provide all available land for a one-off development of public housing just to meet housing demand. This seems to be confirmed by the latest figures indicating that some of the applicants for public housing are less eager to buy their own properties while others are disqualified by failing to meet eligibility conditions. In addition, the downturn in property prices and the withdrawal of migrant workers has helped depress housing demand.

Some 11,000 housing units are under construction, in addition to the existing 10,000 apartments awaiting buyers. Some 70% of unsold flats are second-hand units measuring less than 1,000sq.ft, which could conceivably be bought by public housing applicants. However, more than 80% of apartments currently under construction are larger than 1,000sq.ft, and are obviously unaffordable to public housing applicants, thus a gap between demand and supply for public housing remains. Consequently, the government should adjust its public housing policy from time to time in line with social and economic development and the status of the property market, as well as take into account residents’ actual needs. The government should flexibly tune its public house programme to meet and stabilise residents’ housing needs to ensure that public housing resources are put to good use in the long term.