Government examines home-buyer subsidies
Updated: 2010-06-02 07:38
By Joy Lu(HK Edition)
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The Transport and Housing Bureau kicked off a public consultation on subsidized home ownership Tuesday, but people hoping for a re-launch of the Home Ownership Scheme (HOS) are likely to be disappointed by the lack of supporting arguments.
The consultation paper, available at the bureau's website (www.tdb.gov.hk), focuses on three key questions: Should home ownership be subsidized? Who should be helped? What help should be offered?
Meeting the press after a Housing Authority brainstorming session in the morning, Secretary for Transport and Housing Eva Cheng said the three questions are about the objective and rationalizing the target group and the methods for subsidizing home ownership.
"I think this morning at the Housing Authority's brainstorming session, members also emphasized the importance of getting the positioning right," she said.
She pointed out the policy must be sustainable, rather than addressing only short-term concerns.
"The economic cycle has considerably shortened because of a lot of uncertainties in the world economies. We've seen the US and Europe, the situation there. And that could lead to a lot of fluctuations, a lot of volatility in our housing market," she said.
The policy should be not be aimed at producing an "anti-cycle" effect on the property market, she added.
"No government effort would be able to make a U-turn on certain economic cycles that are based on things like interest rates, which are probably out of our hands," she said.
The public consultation will be carried on different levels until September 17.
Aside from experts and professional groups, people in different housing situations - living in public estates, in HOS flats or in private market flats - will be consulted on their wishes and their views on how to proceed, Cheng said.
People may also express their views through the Internet, by sending emails, leaving posts on the bureau's online forum or participating in discussions on the subject on Facebook, she said.
Cheng will also attend a Legislative Council meeting on May 24.
The consultation came amid mounting frustration over the lack of affordable flats in the private market. One of the most discussed options is the resumption of HOS, which is backed by some sectors including the Democratic Party (DP).
DP lawmaker Li Wah-ming called the consultation a "delaying tactic" by the government.
The consultation paper is focused on reaching a consensus about whether it is fair to subsidize home ownership. There's little discussion about the benefits of HOS, such as how the scheme has helped ease demand for public estate housing, he said.
"All they give is a pile of numbers and there's no substantial analysis," Lee said.
Cheng admitted to no bias against HOS, saying the government is willing to explore all policy tools.
But factors including land resources, sustainability and stability have to be taken into consideration, she said.
At the press briefing, Cheng also commented on a report that she had withdrawn the offer to sell her luxury flat in anticipation of the government's nine measures favoring homebuyers, for regulating property sales.
Cheng denied she had a conflict of interests, saying the decision was based on her family's needs.
The flat was offered for sale four to five years ago when Cheng's daughter was studying in the US and because an elderly member of the family, aged over 90, had difficulty moving around in the apartment. But the flat did not sell. Her family decided to withdraw the offer because the elderly family member has since died and her daughter decided to come back to Hong Kong to pursue her career, she explained.
China Daily
(HK Edition 06/02/2010 page1)