LCQ18: Supply of residential units and sites for residential developments
Following is a question by the Hon Tanya Chan and a written reply by the Secretary for Development, Mr Michael Wong, in the Legislative Council today (November 29):
Regarding the supply of residential units and sites for residential developments in Hong Kong, will the Government inform this Council:
(1) of the respective numbers of units of (i) public rental housing (PRH), (ii) subsidised sale housing and (iii) private residential developments, which were completed in each of the past five financial years and which are expected to be completed in the current and each of the next four financial years (set out in Table 1 and Table 2); whether it knows the respective numbers of vacant units of those three categories of residential units at present;
|Year||Number of units completed|
|Year||Expected number of completed units|
(2) in respect of each of the 210 sites which the Government has identified as having housing development potential, of (i) its area, (ii) its existing use, (iii) the latest progress of amending the relevant statutory plan, and (iv) whether the new use proposed for it is (a) the development of subsidised housing (including PRH, as well as the Home Ownership Scheme, the Green Form Subsidised Home Ownership Scheme and the "Starter Homes" Scheme for Hong Kong Residents) or (b) private residential developments (set out in Table 3 by location of each site);
(7) of (i) the amount of funds injected/to be injected by the Government into the Housing Reserve (the Reserve), and (ii) the actual/estimated expenditure involved in managing the Reserve (including the expenditure items), each year since its establishment in 2014 and in the current and each of the next four financial years (set out in Table 9 and Table 10); the latest arrangements regarding the Government using the Reserve for supporting HA to develop public housing, and its plan on allocation of funds from the Reserve to HA in the coming decade; and
|Year||(i)(estimated figures)||(ii)(estimated figures)|
Having consulted the Transport and Housing Bureau, my reply to various parts of the question is as follows:
(1) In the past five years, the number of completed public rental housing (PRH) units, subsidised sale flats (SSFs) and private residential units is as follows:
Public Housing (Note 1)
|Year||Number of completed PRH units||Number of completed SSFs|
|2016-2017||11 416||3 017|
|Total||62 789||4 005|
Private Residential Units (Note 2)
|Year||Number of completed private residential units|
The estimated number of PRH units, SSFs and private residential units to be completed in future years is as follows:
Public Housing (Note 3)
|Year||Estimated number of PRH units to be completed||Estimated number of SSFs to be completed|
|2018-2019||15 100||7 600|
|2019-2020||14 700||5 800|
|2020-2021||11 900||6 100|
|2021-2022||14 700||5 400|
|Total||75 200||25 100|
|Year||Expected private residential units to be completed|
As at end-September 2017, the number of vacant lettable PRH flats under the HA was about 3 700 and the vacancy rate (Note 5) was around 0.5%. HA does not have information on the number of vacant SSFs.
Note 5: Vacancy rate refers to the percentage of "lettable vacant flats" (excluding those flats which have been offered for PRH applicants' consideration and are expected to be let out in the short term) out of the total lettable PRH stock.
At the third quarter of 2017, there were 230 vacant lettable PRH units (Note 6) under the HKHS. HKHS does not have information on the number of vacant SSFs.
Note 6: Lettable vacant units exclude units that have been offered for applicants' consideration and are expected to be let out in the short term.
According to the "Hong Kong Property Review 2017", there were 43 657 vacant private residential units as at end-2016, accounting for around 3.8% of the total stock in 2016.
(2) The information of the some 210 sites with housing development potential are set out at Annex. For the sites already zoned or rezoned for housing development, the relevant information including land area and flat number are set out in the relevant public documents of the Town Planning Board (TPB) (for details, please visit TPB's website: www.info.gov.hk/tpb/index.html). As at early November 2017, among the some 210 sites, 103 had been zoned or rezoned for housing development, estimated to provide a total of about 122 200 flats (including about 74 900 public housing flats and about 47 300 private housing flats). Another 41 sites have their statutory rezoning procedures initiated, and subject to completion of the rezoning, these sites are estimated to provide a total of about 74 100 flats (including about 69 100 public housing flats and about 5 000 private housing flats). As for the remaining sites, pending the completion of technical studies, we will consult the District Councils and relevant stakeholders on the rezoning proposals setting out the relevant development details including land area and flat number, in accordance with the established procedures prior to submitting the proposals for TPB's consideration.
(3) As at mid-November 2017, information on sites granted by way of short-term tenancy (STT) is as follows:
|Location||Number of STT allocation||Area
|Hong Kong East||167||19|
|Hong Kong West and South||509||55|
|Islands||492||1 720 (Note 7)|
|Sai Kung||1 003||50|
|Tsuen Wan and Kwai Tsing||277||143|
|Yuen Long||1 046||123|
|Sites for railway development projects||26||35|
|Total||5 380||2 458 (Note 7)|
After purchasing a residential site through government land sale or completing lease modification for residential development, the developer is required to complete the construction of a minimum gross floor area specified in the conditions of sale or the conditions of the lease modification, and obtain an occupation permit from the Building Authority within the Building Covenant (BC) period specified under the conditions. In general, the BC period for residential developments varies from 48 to 72 months. The Government sets an appropriate BC period for each development project by taking into account the actual circumstances of each project, including relevant factors such as its development scale and complexity.
(6) For the past five years, the actual surplus and closing cash and investment balance for HA are as follows:
|Year||Actual surplus ($)||Actual closing cash
and investment balance ($) (Note 8)
|2012-2013||5.8 billion||69.2 billion|
|2013-2014||6.4 billion||70.0 billion|
|2014-2015||6.9 billion||66.6 billion|
|2015-2016||4.1 billion||57.0 billion|
|2016-2017||5.3 billion||49.1 billion|
Note 8: After deduction of construction expenditure.
Based on the 2016/17 to 2020/21 budgets and forecasts endorsed by HA in January 2017, the projected Surplus and Closing Cash and Investment Balance for the coming years are as follows:
|Year||Projected Surplus ($)||Projected Closing Cash and Investment Balance ($)|
|2017-2018||5.6 billion||37.9 billion|
|2018-2019||7.0 billion||32.6 billion|
|2019-2020||5.1 billion||24.4 billion|
|2020-2021||7.4 billion||18.0 billion|
|2021-2022||Not yet available||Not yet available|
Note 10: In response to the home ownership aspirations of low to middle-income families, HA introduced two rounds of Interim Scheme in 2013 and 2015 respectively to allow White Formers to purchase SSFs with premium unpaid in the HOS Secondary Market.
Ends/Wednesday, November 29, 2017
Issued at HKT 18:33