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Housing Measures to Promote Confidence, Stability

Today's announcement by the Chief Secretary of a 10-month moratorium on all sales of Home Ownership Scheme (HOS) flats, and several related measures, should help bring a greater measure of confidence and stability to the local residential property market.

The Hong Kong General Chamber of Commerce welcomes the move, together with the Government's pledge to maintain the level of home ownership loans to eligible families, the suspension of sales of Housing Society subsidised flats and the freeze on allocating new sites for HOS development.

The Chamber also welcomes the Government's decision to re-examine, together with the Housing Authority, several key longer term issues related to the development of the housing residential housing market during the 10 month extent of the moratorium through until June next year.

"The Government's decisions are in line with the policy recommendations the Chamber has been making in various submissions to the SAR Administration over recent months," a Chamber spokesman said.

"Residential property ownership is one of the key components of the local economy and an important store of wealth for Hong Kong families. It is vital, in such circumstances, that this important sector of the economy remains healthy to enhance confidence in the overall Hong Kong SAR economic outlook.

"However, the measures announced today should help further stabilise the market for residential housing and offer the opportunity over the coming 10 months for the Government to re-examine its entire residential housing policy, the spokesman said.

For further information, contact: Ian K Perkin, Chief Economist, 2823-1242