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for. 1.
Statement on Housing Policy 2.
HA Welcomes Government's Statement on Housing Policy
3.
Statement by Secretary for Housing, Planning and Lands 4.
LCQ18: Ngong Ping development project 5.
LCQ15: Outline Zoning Plans 6.
Homes plan 'not enough' 7.
Measures will spur market: developers 8.
Talk of spin-off to fund big bridge buoy Hopewell 9.
Housing policy revamped to stabilise market 10.
The Measures 11.
Sales of public flats come to an end 12.
Freeze on land auctions leaves 37 sites and projects
on ice 13.
Sliding prices 14.
Appeals to lift cap on home loans dismissed by minister
15.
Rising vacancies 16.
Anti-speculation measures deemed obsolete 17.
Tung's tinkering shows how little he has learned 18.
The twisting path of Tung’s Housing Policy 19.
Tycoons united in praise of new policy 20.
Legislators warn that halting sales will increase
deficit 21.
Review of tenancy laws to spur rental market 22.
Anson Chan urges respect for public's views on Article
23 23.
Power firms pressured as Legco urges cuts in electricity charges 24.
Cartoon 25.
Lai See 26.
Wheeler 27.
A heavy price 28.
Historic buildings need legal protection 29.
Sino Land chairman rejects reorganisation options
1. Statement on Housing Policy
Hong
Kong Government, 13 November 2002 The
Government announced today (November 13) a set of clear and comprehensive housing
policies and a package of measures to facilitate the efficient operation of the
property market and restore public confidence in it. Addressing
the Legislative Council today, the Secretary for Housing, Planning and Lands,
Mr Michael Suen, said extraordinary measures are required to restore confidence
and help the economy tide over the current crisis, one characterized by continuing
deflation, lackluster domestic consumption, external uncertainties as well as
over supply in the property market. In
his "Statement on Housing Policy", Mr Suen maintained that the overarching
objective of the Government's housing strategy is the provision of subsidized
rental housing for families in need. He also acknowledged that Government intervention
in the property market must be kept at a minimum by withdrawing as far as possible
from other housing assistance programmes, a conclusion drawn after a comprehensive
review and consultation conducted during the past few months. Flowing
from this, Mr Suen believes that the Government should focus its role on ensuring
an adequate supply of land to meet market demand and the provision of rental assistance.
In future, the
scale of the public housing programme will be determined by actual demand with
a view to maintaining the average waiting time for public rental housing (PRH)
at three years, he said, noting that the number of families on the PRH waiting
list has been substantially reduced to 90,000, compared with 150,000 in 1997.
The Government
will continue to assist low-income families and PRH tenants to become home owners,
but the direct provision of subsidized sale flats should give way to loans for
purchase of flats of their own choosing. "Compared
with the 'brick and mortar' approach, housing loans are more flexible. The Housing
Authority can adjust the annual loan quota according to the actual demand."
However, recognizing
that home ownership is essentially a matter of personal choice and affordability,
one that should best be driven by market forces, Mr Suen dismissed the need to
set any rigid indicator. "It
is therefore unnecessary for Government to continue to hang on to the long term
target of achieving the 70% home ownership rate by end 2007," he stated.
Similarly, he
considered it superfluous to pre-determine a numerical target for the provision
of assisted housing opportunities as the number to be provided every year would
have to be adjusted flexibly according to actual needs, and might vary upwards
or downwards. With
the positioning and direction of the Government's housing policies clarified,
Mr Suen announced a nine-point package of highly focused measures to redress the
current imbalance between supply and demand in the property market. He
noted that in addition to around 20,000 flats which were completed in the past
few years but remain unsold, there are another 30,000 uncompleted flats available
for sale now, making it difficult for the market to digest. "To
rectify the current serious supply and demand imbalance, Government has decided
to stop all scheduled land auctions and call off the two remaining land auctions
in this financial year. In addition, the Application List will be suspended until
end 2003. Thereafter, the supply of new land will only be triggered from the Application
List," said Mr Suen. On
concerns about the impact the residential development projects of the two railway
corporations has on the market, Mr Suen said better co-ordination would be done
on the pace and timing of tendering of these developments. He
also revealed that an understanding had been reached with the corporations concerned
whereby no railway property developments would be put up for tender in the coming
year. Mr Suen
went on to say that the Government would recommend to the Housing Authority that,
except for a small number of unsold and returned flats, the production and sale
of Home Ownership Scheme (HOS) flats would cease indefinitely from 2003 onwards.
Completed flats and those under construction would be disposed of through market-friendly
means. "The
advantages and value of the HOS are gradually diminishing, so are its role and
attractiveness," he remarked, pointing to the worsening overlap between the
HOS and the private residential market as well as the recent record low subscription
rate. In addition,
the Government will stop all mixed development projects, including the Flat for
Sale Scheme operated by the Housing Society and will recommend to the Housing
Authority to terminate the Private Sector Participation Scheme. Noting
that around 134,000 public rental units have been put up for sale under the Tenants
Purchase Scheme (TPS) over the past five years, Mr Suen said proposals would be
put to the Housing Authority to halt the TPS after the sale of phases 6A and 6B
next year. The
decision was made in line with the Government's reduced involvement in the property
market and the need to maintain an adequate supply of PRH units for allocation
to eligible families in the long run, he explained. As
far as the private sector is concerned, Mr Suen said a thorough review of the
Landlord and Tenant (Consolidation) Ordinance would be conducted with a view to
resuming the free operation of the private rental market. "Apart
from revitalizing the market to make it more alluring to investors, the proposed
relaxation of tenancy control will give us an additional leverage to promote the
implementation of the rental allowance scheme by making available more choices
of private rental flats," he suggested. Finally,
the remaining anti-speculation measures in respect of restriction of internal
sale quota and the number of residential unit and car parking spaces for sale
to individual buyers would be removed. Mr
Suen believes that a clear, comprehensive and coherent housing policy is the first
step to restoring public confidence in the property market. Only with this can
the market operate smoothly and thrive, he maintained.
2. HA Welcomes Government's Statement on Housing Policy
Hong
Kong Government, 13 November 2002 The
following is issued on behalf of the Housing Authority: Responding
to the Secretary for Housing, Planning and Lands' statement earlier today (November
13), the Chairman of Housing Authority, Dr Cheng Hon-kwan, welcomed the Government's
repositioning of its housing policies and clarification of its role in meeting
the housing needs of the public. "The
Secretary has made a comprehensive response to the problems facing us. I think
the statement has struck a very good balance amongst all the competing interests
for the overall benefit of Hong Kong," Dr Cheng said. Dr
Cheng also welcomed the Government's confirmation of its commitment to the low-income
families and its pledge to keep the average waiting time for public rental housing
at three years. As
for the nine measures targeted at redressing the current imbalance between supply
and demand in the property market, Dr Cheng revealed that some of them have already
been discussed by the Housing Authority, although details of the implementation
plan would have to be worked out. "The
role of the Housing Authority has always been to assist the Government in the
implementation of its public housing programmes. There would not be any exception
this time and we would carefully consider the proposals made in the statement
and provide the Government with the maximum support in taking them forward,"
Dr Cheng added.
3. Statement by Secretary for Housing, Planning and Lands
Hong
Kong Government, 13 November 2002 Following
is a statement delivered by the Secretary for Housing, Planning and Lands, Mr
Michael Suen, at the Legislative Council today (November 13) concerning the Government's
housing policy. Madam
President, This
is the first time I set out to this Council the direction, philosophy and principles
that underpin the SAR Government's housing policy since I assumed office in July.
I hope my statement today will help rationalize the various housing targets, strategies
and measures, and clarify what Government's role should be. The objective is to
let all stakeholders and the general public have a clear-eyed view on the general
direction of our housing policy. Close
link between the property sector and economy The
property sector, closely interwoven with every single aspect of our daily life,
has been a major pillar of our economy. Together with the construction industry,
it accounted for an average of 14% of the Gross Domestic Product over the past
five years. To many people, buying properties has been a principal channel to
garner in their wealth. While
we have to face up to the challenges thrown up by economic transformation and
high unemployment in recent years, the fundamentals of our economy remain solid.
The Gross Domestic Product is still growing for this year. That said, the unabated
deflation, lackluster domestic consumption, along with other external uncertainties
and the current state of over-supply of flats have posed immense pressure on the
property market. Against
the peak in 1997, property prices have tumbled by over 60%. The volume of transactions
also shows a marked decline. The plunging net asset values in the private residential
market has inhibited economic recovery. Over the past few years, the properties
kept by many owners have turned into negative equity. The Chief Executive is deeply
concerned about the situation. To pump-prime the deflation-battered economy, he
asked the Housing, Planning and Lands Bureau to undertake a root and branch review
of the SAR Government's housing policy with a view to restoring the public's confidence
in the property market. Re-positioning
of our housing policy In
the past few months, my colleagues and I conducted a comprehensive review of all
our housing, planning and lands policies, including the housing targets that Government
has hitherto been pursuing. We also consulted widely the stakeholders, academics,
political parties, the Housing Authority, the Housing Society, representatives
from various housing concern groups and resident groups. I thank them all for
their views which are as valuable as they are inspirational. We
recognize that delivering the overarching objective of providing subsidized rental
housing for families in need must continue to sit at the very heart of Government's
housing strategy, just as we recognize that Government should withdraw from its
role as property developer by halting the production and sale of subsidized flats
and reduce radically its share in the overall housing production. Government should
also set in train highly focused measures to redress the current serious imbalance
between supply and demand, and to restore the confidence of the public and investors
in the property market. Provision
of assisted rental housing Beyond
all doubt, it is our society's consensus and common sense of purpose to provide
affordable rental housing to low-income families. Thanks to continuous investment
by Government over the past five years, we have come a long way in reducing the
number of families on the Waiting List from 150 000 in 1997 to around 90 000 as
at present. The average waiting time for Public Rental Housing (PRH) now is just
less than three years, down from over six years in 1997. I wish to reassure you
at this point that Government will continue to provide subsidized rental accommodation
to low-income families which are unable to afford private rental housing, and
will endeavour to keep the average time for waiting PRH at three years. Home
ownership rate It
has been Government's objective to promote a higher home ownership rate. Since
1997, some 260 000 families have become home owners through Government assistance.
The home ownership rate has increased from 50% in 1997 to 56% as of today. Indeed,
it is as high as 75% in the private sector and stands at 36% in the public sector.
The home ownership rate of Hong Kong compares favourably with that of other advanced
countries and regions. Both
the economy and the property market have gone through great changes over the past
five years. We realize that in the current circumstances home ownership should
be a matter of personal choice and affordability. It is therefore unnecessary
for Government to continue to hang on to the long term target of achieving the
70% home ownership rate by end 2007. Provision
of assisted housing opportunities Based
on the forecast of the long-term housing needs, Government pledged to provide
50 000 assisted housing opportunities annually. About half of these were in the
form of new PRH flats and rental allowance, while the rest were made up of subsidized
home ownership flats or loans. In
future, public housing programmes will be geared towards meeting the housing needs
of low-income families. The annual production of PRH units will be predicated
by actual demand and the need to keep the average waiting time at three years.
As regards the quota for the Home Assistance Loan Scheme, it should also be adjusted
constantly according to the actual demand and the Housing Authority's resources.
In other words, the number of assisted housing opportunities provided by Government
could vary, either upwards or downwards, according to the actual demand. As long
as we could achieve the above pledge, it is superfluous to pre-determine a numerical
target for provision of assisted housing opportunities. General
directions In
a nutshell, we have to centre our work around the following three major areas
- (a) the thrust
of Government's subsidized housing policy should be to assist low-income families
which cannot afford private rental housing; (b)
Government's future role should principally focus on land supply and provision
of rental assistance. It should also withdraw as far as possible from other housing
assistance programmes to minimize intervention in the market; and (c)
Government must maintain a fair and stable operating environment to enable a sustained
and healthy development of the private property market. Government should ensure
an adequate supply of land together with the necessary supporting infrastructure
to meet market demand. As regards the quantum of private housing production, this
should be a matter for the market to decide. Specific
measures 13.
Upon clarification of the positioning and direction of our housing policies, we
have taken a critical and comprehensive look at the current situation and what
should be done in future. To root out the problems, we have decided to introduce
the following nine measures covering land supply, public housing development programme
and the mode of housing subsidies. (A)
Land Supply First,
land supply. Apart from ensuring an adequate supply of land to meet market demand,
we believe Government should also adjust its land supply strategy flexibly when
the market loses its equilibrium and is afflicted with a massive over-supply.
At present, the number of completed and uncompleted private residential flats
available for sale amounts to some 20 000 and 30 000 respectively. However, statistics
for the past few months showed that demand remained sluggish, with a marked slow-down
in the take-up rate. To rectify the current serious supply and demand imbalance,
Government has decided to stop all scheduled land auctions and call off the two
remaining land auctions in this financial year. In addition, the Application List
will be suspended until end 2003. Thereafter, the supply of new land will only
be triggered from the Application list. We
are weary that the above measures will be interpreted by some as being interventionist.
However, given the current exceptional dire state of the property market, we believe
there is an impending need for Government to bring forward extraordinary measures
in the coming year. Our aim is to restore public confidence in the property market
as speedily and effectively as possible. (B)
Railway Land As
regards the residential developments of the two railway corporations, there have
been criticisms that the two corporations should not participate in the property
market and compete with private developers as mass transport providers. Some critics
also believe that because of their sheer scale, railway property developments
would have an impact on the property market. It
should be noted that Government has already granted to the concerned railway corporation
the development rights of those railway related properties that are under construction.
However, to ensure a sustained and healthy development of the property market,
we will step up our liaison with the two railway corporations to better coordinate
the pace and timing of tendering the concerned railway-related property developments.
Government will render assistance through appropriate measures to enable an orderly
disposal of the properties according to actual demand. Government and the two
railway corporations have already forged a consensus whereby no railway property
developments will be put up for tender in the coming year. (C)
PRH Construction Programme To
maintain the average waiting time for PRH at three years, it is estimated that
over 20 000 PRH units will have to be built annually in the next few years. However,
the actual quantum of production will depend on the housing demand of low-income
families, turnover of PRH tenants and the general acceptability of the proposed
rental allowance scheme. To deliver Government's housing pledge for those in genuine
need, we will watch the development of the relevant factors closely in order to
put together a rolling PRH production programme that will be adjusted annually.
(D) Home Ownership
Scheme The major
downward price adjustments in the private residential flats in recent years have
brought about an overlap between HOS and private residential market. The Housing
Authority has already set in motion a series of measures over the years to adjust
its HOS programme in response to these changes in market conditions. These included
a major cutback in HOS flat production, conversion of excess HOS flats into PRH
and implementation of a moratorium on the sale of HOS flats in 2000 and 2001.
The overlap between
HOS and private residential market is getting more serious amidst a gross imbalance
between supply and demand and vicious price competition in the private residential
market. The advantages and value of the HOS are gradually diminishing, so are
its role and attractiveness. The subscription rate of HOS has also hit a record
low. We therefore believe that Government should withdraw as speedily as possible
from the property market in order to redress the balance in the market. Government
will therefore recommend to the Housing Authority that, except for a small number
of unsold and returned flats which will be sold to Green Form applicants, the
production and sale of HOS flats will cease indefinitely from 2003 onwards. For
those HOS flats that are completed or under construction, these will be disposed
of through market-friendly means. (E)
Home Assistance Loan Scheme Following
the cessation of the construction and sale of HOS flats, the Housing Authority
will continue to offer loans to help eligible families to buy their own homes
through the new Home Assistance Loan Scheme. Apart from helping sitting PRH tenants
improve their living conditions, the Scheme would maintain the mobility of PRH
tenants and enable re-allocation of PRH flats so vacated to other needy families.
Compared with the "bricks and mortar" approach, housing loans are more
flexible. The Housing Authority can adjust the annual loan quota according to
the actual demand, thereby avoiding any inability to allocate resources flexibly
in response to any possible challenges posed by mismatch between demand and supply.
We do recognize
that the provision of home ownership loans is to a certain measure a form of market
intervention. Nonetheless, we believe it remains beneficial to maintain the loan
scheme for the time being, but would re-visit the issue in due course. (F)
Mixed Development Schemes We
have also reviewed the mixed development projects undertaken by the Housing Society
and the Housing Authority in collaboration with private developers. We have come
to the view that if we are to realize the greatest economic gains of the developments
for the society as a whole, we have to accord sole development rights to the private
developers. Hence, we will stop all the mixed development projects, including
the Flat for Sale Scheme operated by the Housing Society. We will also recommend
to the Housing Authority to terminate the Private Sector Participation Scheme.
Government will examine jointly with the Housing Authority and the Housing Society
the feasibility of converting the completed flats as well as those being constructed
under these schemes to other uses. (G)
Tenants Purchase Scheme In
the five years since the launching of the Tenants Purchase Scheme (TPS), some
134 000 PRH units have been offered for sale. The scheme opens up a window of
opportunity for PRH tenants, who would otherwise not be able to afford private
housing, to become home owners. It also helps reduce the Housing Authority's operating
costs. The irony of TPS, however, is that as Government keeps on rolling out the
existing PRH stock for sale to sitting tenants, it has to continue to embark on
a major PRH production programme to replenish its housing stock. Continuation
with the TPS clearly flies in the face of the principle of rational utilization
of public resources. Moreover, any massive disposal of low-priced TPS flats would
have knock-on impact on the property market, particularly the second-hand market.
All in all, in
order to maintain an adequate number of PRH flats to meet the demand from eligible
families in the long run, Government will recommend to the HA that except for
the flats that were already sold and Phase 6, which was announced to be implemented
next year, the sale of PRH units under TPS should be halted. This is also in line
with the general policy direction of withdrawing gradually Government's involvement
in the property market. PRH tenants who wish to become home owners may make use
of the Housing Authority's loan programme to buy flats in the private market,
or to purchase HOS flats in the secondary market for which no payment of land
premium is required. (H)
Tenancy Control In
the private rental market, the current ample supply has helped raise tenants'
bargaining power. On the other hand, for those owners who wish to resume their
flats for re-letting, they have to go through an extremely complicated process.
Many of the provisions for protection of security of tenure under the Landlord
and Tenant (Consolidation) Ordinance, which was enacted more than 20 years ago,
are now outdated. We will undertake a thorough review of the Ordinance with a
view to resuming the free operation of the private rental market, giving owners
the flexibility and autonomy they deserve, and mitigating the difficulties in
recovering flats for re-letting. Our objective is to relax all excessive protection
of security of tenure and reduce intervention in private tenancies. Apart from
revitalizing the rental market to make it more alluring to investors, the proposed
relaxation of tenancy control will give us an additional leverage to promote the
implementation of the rental allowance scheme by making available more choices
of private rental flats. I hope to put the Landlord and Tenant (Consolidation)(Amendment)
Bill to LegCo for scrutiny next year. (I)
Anti-speculation Measures Since
early 1990's, in response to the rampant speculative activities in the property
market on a wave of soaring prices, Government introduced a set of anti-speculative
measures to safeguard the interests of home buyers. Following adjustments in the
property market in recent years, most of these measures have either been relaxed
or withdrawn. Nevertheless, we have taken the opportunity to review the remaining
measures. Apart from those consumer protection provisions, we recommend that the
following two remaining anti-speculation measures be removed - (a)
restriction on internal sale - after years of development of the property market,
the restriction on internal sale of flats is no longer serving the original purpose.
As flats reserved for internal sale by developers could also be sold to external
buyers, the restriction no longer fits the circumstances of the day; and (b)
the restriction that each purchaser can only buy one residential unit together
with no more than two parking spaces. Conclusion
As we proceed
to take forward the proposed new housing policies to mesh with other wider changes
that are now taking place, it remains our firm belief that the overarching objective
of our public housing policies should be to satisfy the society's basic housing
needs. Home ownership should be a matter for the market with which Government
should refrain from competing. A clear, comprehensive and coherent housing strategy
is instrumental in restoring public's confidence in the property market. Only
in doing so can we enable the property market to operate smoothly and prosper,
and add further momentum to Hong Kong's economic development. Allow
me to stress here that we do not expect that the above measures could root out
all the problems immediately. We are, however, determined to take practical steps,
and I wish to join up with you and call upon your support to tackle the greatest
issues that face us in these testing times. Thank
you.
4. LCQ18: Ngong Ping development project
Hong
Kong Government, 13 November 2002 Following
is a question by the Hon Emily Lau and a written reply by the Secretary for Economic
Development and Labour, Mr Stephen Ip, in the Legislative Council today (November
13): Question
: To develop
tourism, the Administration is planning to carry out a development project at
Ngong Ping, Lantau Island but the Po Lin Monastery has recently expressed dissatisfaction
with the project. In this connection, will the Executive Authorities inform this
Council: (a)
of the number of discussions the Administration has held with the Monastery over
the issue, with a view to striking a balance between the need to "protect
religious culture" and the need to "develop Ngong Ping"; (b)
of the respective proposals put forward by the Monastery which the Administration
has accepted and rejected in the course of the discussions, and the reasons for
rejecting some proposals; (c)
whether the Ngong Ping development project has been drawn up on the principle
of sustainable development and preservation of the unique local culture and tradition;
and (d) whether,
following the discussion on 24 October with the Monastery, the Administration
will modify the contents of the Ngong Ping development project; if so, of the
details of and reasons for the modifications? Reply
: Madam President,
(a) In planning
for the development at Ngong Ping on Lantau, the Government has maintained dialogues
with relevant bodies and local organizations, including the Islands District Council,
relevant rural committee and the Po Lin Monastery (the Monastery). Representatives
of different government bureaux and departments have met with the representatives
of the Monastery on various issues on no less than ten occasions. We will continue
our dialogues with the relevant organisations. When we developed the relevant
plans, including the development framework for the cable car system and the development
of tourist and complementary facilities at Ngong Ping, we have taken into account
the views expressed. The draft Ngong Ping Outline Zoning Plan (the draft OZP)
consolidates these proposals and views and will provide the statutory basis to
define the overall land use planning for the area. The development concept aims
to preserve the natural and tranquil environment of the area and its religious
setting. According to the requirements of the draft OZP, there are stringent restrictions
on matters such as land use, development density and building height. The Monastery's
concerns include the management of the proposed piazza in front of the Monastery,
access to the Monastery and the proposed
emergency vehicular access. (b)
In the process of preparing the draft OZP by the Planning Department, the Monastery
had submitted comments on various proposals. After considering these views, the
Government had made amendments to certain proposals in the draft OZP, before seeking
the Town Planning Board's (TPB) formal approval to gazette the draft OZP for public
inspection. These include the permitted height for a proposed new building within
the Monastery, the planning for the proposed Tourist Corridor, and changing the
proposed zoning of a site from "Holiday Resort" use to "Recreation"
use. During the
public inspection period of the draft OZP, the Monastery formally submitted an
objection to TPB. In accordance with the established procedures, the TPB will
hear all objections in the next two months before coming to a decision. (c)
In promoting tourism development at Ngong Ping and the cable car project, the
Government acknowledges the need to preserve the cultural heritage of the area
and to ensure that developments meet the objective of sustainable development.
The principle observed is that the location and design of developments and facilities
will not affect the natural environment and religious setting of the area. Developments,
apart from having to meet relevant statutory requirements, must complement the
environment of the area in matters such as land use, development density and building
height. (d) Representatives
of the Government met with representatives of the Monastery on October 24, 2002
to listen to their views on the draft OZP. The two sides have agreed to maintain
a dialogue on questions like management of the proposed piazza in front of the
Monastery, access to the Monastery and emergency vehicular access.
5. LCQ15: Outline Zoning Plans
Hong
Kong Government, 13 November 2002 Following
is a question by the Hon Albert Chan and a written reply by the Secretary for
Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today
(November 13): Question:
At present, some
parts of Sai Kung and Cheung Chau are not included in any statutory plan such
as Outline Zoning Plans ("OZPs") and Development Permission Area Plans
("DPAPs"). In this connection, will the Government inform this Council:
(a) of the areas
which are not yet included in any OZPs or DPAPs and the reasons for that; (b)
whether the Administration consults residents of the area when it prepares the
statutory plans; if so, of the details; if not, the reasons for that; and (c)
whether it has assessed if the lack of statutory plans for any area will hinder
its new development and cause inconvenience to local residents; if it has made
such an assessment and the conclusion is in the affirmative, of the measures the
Administration will adopt to improve the situation; if the conclusion is in the
negative, the reasons for that? Reply:
Madam President,
(a) At present,
areas which are not covered by any Outline Zoning Plan (OZP) or Development Permission
Area Plan (DPAP) include country parks, the frontier closed area, sparsely populated
and remote areas, and some outlying islands. For the areas within country parks,
since their use is governed by the Country Parks Ordinance, there is no need to
separately prepare statutory plans for these areas. The rest are mainly remote
areas with a small population. Our objective is to draw up statutory plans for
these areas gradually. We are now preparing the OZPs for the Sai Kung Town Centre
and Cheung Chau, the work of which is expected to complete next year. (b)
In the process of preparing a statutory plan, we always consult residents of the
district concerned. After preliminary consideration of a draft OZP by the Town
Planning Board (TPB), we will consult the concerned District Council and Rural
Committee for their initial comments. Their feedback will be submitted to TPB
for consideration before the plan is gazetted and exhibited for public inspection.
Those who are affected by the plan, including local residents, may lodge objections
during the exhibition period. In addition, we will explain in detail the contents
of statutory plan to the District Council and other concerned residents' associations
and listen to their views. (c)
Apart from country park areas and the frontier closed area, areas not yet included
in any statutory plan are mostly remote and scantily populated which have no pressing
need for development. Moreover, most of these areas are covered by Outline Development
Plans or Layout Plans. These government plans, having been examined by concerned
government departments and approved by the relevant committees after public consultation,
may serve as development control guidelines for individual development and redevelopment
projects. It should therefore not hinder new development in the areas concerned
or cause inconvenience to local residents.
6. Homes plan 'not enough'
Jonathan
Tam, Karen Chan and Matthew Lee, The Standard 14 November 2002 The
government's long-awaited measures to revive Hong Kong's torpid property market
drew a muted response from most analysts yesterday, with many saying the measures
did not go far enough. The
nine-point package announced in the Legislative Council by Secretary for Housing,
Planning and Lands Michael Suen would do little to revive apartment prices and
would worsen the deficit, analysts and economists said. The
government wants to boost the property market, which has suffered a dramatic 60
per cent decline, and restore public confidence in the hope of triggering a revival
in the moribund domestic economy. The property slump has accounted for about 50
per cent of nearly four years of deflation. "To
break this vicious downward spiral, the government will take resolute measures
to stabilise property prices and the property market, to restore public confidence
in property ownership and, in the end, to speed up the recovery of our economy,''
Chief Executive Tung Chee-hwa said. But
analysts said weak economic fundamentals such as the high jobless rate and falling
wages would still discourage homebuyers. "The
government's focus is on land supply, which can only be reflected into the market
two to three years later,'' Goldman Sachs economist Dick Li said. "The short-term
oversupply won't be solved as wages continue to adjust and the external environment
remains uncertain.'' Announcing
the measures, Suen said the government would cancel all scheduled land auctions,
including the next two this fiscal year. The application list, which developers
use to trigger a land sale, would be suspended until the end of 2003. After that,
all land would be sold only through the list. The
government said it had also reached agreement with the MTR Corporation and Kowloon-Canton
Railway Corporation that no railway property developments would be released for
tender in the coming year. The
government would advise the Housing Authority to stop building and selling Home
Ownership Scheme flats and cancel the scheme that allows public housing tenants
to buy their flats, except for those already announced. Joint
projects between the Housing Authority, the Housing Society and private developers
would stop. Units completed and under construction would be put to other uses. The
quota for low-interest loans for homebuyers would be reviewed every year, and
the whole scheme would be re-evaluated. In
the rental market, restrictions on home owners wanting to re-let an apartment
would be eased. Anti-speculation
measures, including restrictions on internal sales and the number of units a person
could buy in one project, would be scrapped. "We
do not expect that the measures will root out all the problems immediately,''
Suen said. "We
are, however, determined to take practical steps ... to tackle the greatest issues
that face us in these testing times.'' A
United States securities house analyst said the 12-month suspension on land sales
was too short. Previous suspensions had not boosted the property market and this
one was unlikely to do so. "Desperate
times need desperate measures,'' he said. "The market will only be impressed
if the government announces a three-year suspension or suspension until further
notice.'' Analysts
also criticised the latest measures for focusing too much on the supply side while
overlooking demand. A brokerage analyst said any positive effects could be shortlived
as revival depended very much on signs of improvement in the local economy. Worse,
the measures would be at the expense of the swelling deficit, as much of the government's
revenue was from land sales. Facing
a deficit of more than HK$60 billion for the year to March, the government has
received only HK$6 billion from land sales against a forecast HK$25 billion. "A
bigger concern is next year, when it also expects a large income from land sales
but is unlikely to get any,'' Goldman Sachs' Li said. "The government may
introduce other revenue measures that may further reduce income and thus demand
for apartments.'' Rating
agency Fitch said it would review Hong Kong's rating at the end of the year as
the measures could weaken the SAR fiscally. Standard
& Poor's said the package would probably improve market sentiment but its
impact on property prices was "far from certain''.
7. Measures will spur market: developers
Joyce
Li, The Standard 14 November 2002 Leading
developers welcomed the government's ``decisive'' measures to bolster the property
market, saying they would restore homebuyers' confidence, create jobs, boost consumer
spending and spur economic recovery. Cheung
Kong Holdings deputy chairman Victor Li said: ``It's good news. It will strengthen
confidence in the property market in the long-run and revive economic development.'' Sun
Hung Kai Properties vice-chairman and managing director Thomas Kwok said the government
had been decisive. ``The new housing policy is back to being market driven, in
keeping with Hong Kong's status as the world's freest economy, and will help to
reinforce both overseas and local investors' confidence in the territory,'' he
said. Kwok said
it would restore confidence in property ownership, create new employment opportunities
and speed up the economic recovery. Real
Estate Developers Association chief, tycoon Stanley Ho, hailed the government
for giving ``the right shot'' to the property sector. A
statement issued by the association said: ``We believe this is a very important
message which sets out the measures to address the over-supply situation immediately,
and at the same time provides a clear signal of government's resolute intention
to disengage itself from the property market in the longer term.'' Sino
Land chairman Robert Ng said the measures were ``very good'' and would benefit
the local economy. Developers,
hard-hit by the property downturn, have long urged the government to come up with
measures to stabilise the sector. But
the supportive voices from developers failed to excite investors ahead of yesterday's
announcement. The Hang Seng properties sub-index had climbed only 0.5 per cent
by yesterday's close. Shares of the three largest developers - Cheung Kong Holdings,
Sun Hung Kai Properties and Henderson Land Development - rose 0.96 per cent, 0.4
per cent and 1.34 per cent respectively. In
a sign it believes the market is ripe for a rebound, Cheung Kong will raise the
price on its latest batch of flats at Banyan Garden by 2-3 per cent when sales
open next week, company executive director Grace Woo said. Woo
said Cheung Kong's land bank was sufficient for the next five to six years.
Bank of East Asia chairman David Li believed the measures would revive homebuyers
confidence.
8. Talk of spin-off to fund big bridge buoy Hopewell
Staff
reporter, The Standard 14 November 2002 Hopewell
Holdings' shares rose yesterday amid talk of a possible spin-off of its mainland
toll road business to fund a controversial HK$15 billion bridge linking Hong Kong
with Macau and Zhuhai. The
infrastructure and property developer declined to comment on the possibility,
but a spokeswoman said listing was ``one of the things we have thought about''.
Nevertheless, talk of a possible share sale helped the Hong Kong-traded stock
gain 4.4 per cent to close at HK$4.725. Hopewell's toll road business - which
accounts for 71 per cent of earnings - comprises five roads totalling 360 kilometres
in the Pearl River Delta. Last
year, the company earned a net profit of HK$516 million from its stakes in the
joint-venture toll roads and daily average traffic amounted to 364,000 vehicles,
up 8 per cent from 2000. Hopewell
is reportedly aiming for a public listing in the first half of 2003 and the sponsor
is likely to be Salomon Smith Barney, which has begun preparation for the share
sale. Proceeds from the offering could finance Hopewell's proposed 28-kilometre
Hong Kong-Macau-Zhuhai bridge, should the project get a green light. SAR
and mainland officials are expected to hold talks on the issue this month.
The bridge plan has sparked a row with Li Ka-shing, who owns Hutchison Whampoa.
Li opposes the project, concerned that Hopewell or other developers could be given
land subsidies to develop container terminals.
9. Housing policy revamped to stabilise market
JIMMY
CHEUNG, SCMP 14 November 2002 The
government has launched a sweeping revision of its housing policies in a bid to
revive Hong Kong's sluggish property market. A
set of nine measures were announced yesterday, the highlight of which is that
regular land auctions - once the backbone of government revenue - are to be scrapped.
Auctions initiated by applications from developers will be the sole method of
land disposal after 2003. Moreover,
the subsidised Home Ownership Scheme will "cease indefinitely". Officials
say they hope this will send a clear message to the market that intervention will
henceforth be kept to a minimum. Announcing
the nine-point package yesterday, Secretary for Housing, Planning and Lands Michael
Suen Ming-yeung said he hoped confidence in the property market would be restored
and speed up the economic recovery. "We
have gone back to basics. We are not just trying to address one or two problems,"
he said.
"Our conclusion is that we should not get involved in various
aspects harmful to the economy. We believe that we have now cleared the field
to enable the market to function more properly. "There
is now a clear understanding of the role that can be played by the private sector,
without fear that there is a one-off opportunity that the government will step
in and interfere. I hope that this time the market will respond positively,"
he said. Mr Suen
would not be drawn on whether the measures aimed to push prices up, saying it
was up to the market to respond. Under
the package approved by the Executive Council, two land auctions scheduled for
before April will be cancelled so that 50,000 private flats up for sale could
be absorbed by the market. Mr
Suen said he was sure the action was necessary. "We believe there is a need
for the government to bring forward extraordinary measures. Our aim is to restore
public confidence in the property market as speedily and effectively as possible."
Without further
revenues from the HOS and land sales, Mr Suen admitted the measures would hit
both the government's budget deficit and the Housing Authority's finances. But
he said the rewards of a more vibrant economy would make up for it. Public
housing will not be abandoned entirely, as Mr Suen said the government would still
produce around 20,000 to 30,000 public rental housing units in order to keep the
waiting time around three years. A new interest-free housing loan scheme will
be provided, but without pre-determined quotas. On
Chief Executive Tung Chee-hwa's target of achieving 70 per cent home ownership
by 2007, Mr Suen said ownership was a personal choice and therefore it was unnecessary
to hang on to the target. The
government's measures drew support from the two railway corporations, whish are
key suppliers of flats. The MTRC and KCRC have agreed that no railway property
development will be put up for tender next year. When
asked if housing policy would sway again if the package proved to be ineffective,
Mr Suen said: "We have done all we can without reservations. Now that we
have made a clear policy statement about our role, we believe that the chances
of similar things happening again would be very small." Mr
Tung, who spoke earlier in the day, said the measures were aimed at reviving public
confidence in the property market and helping in the process of economic recovery
and restructuring. He
said recovery had been hampered by persistent deflation, of which the slump in
property prices was a major cause. "It is essential to break this vicious
downward spiral," he said.
Political reaction was mixed. The Democratic
Alliance for Betterment of Hong Kong and the Liberal Party backed the government
package, while the Democrats expressed worries that the budget deficit would worsen.
Ratings agency
Standard & Poor's was unimpressed, saying the reduction in land supply would
take years to have an effect on housing production levels.
10. The Measures
JIMMY
CHEUNG, SCMP 14 November 2002 
11. Sales of public flats come to an end
PATSY
MOY, SCMP 14 November 2002 The
decision to halt sales of public and subsidised flats signals an end to the government
competing with private developers. Secretary
for Housing, Planning and Lands Michael Suen Ming-yeung yesterday announced that
sales and construction of flats under the Home Ownership Scheme (HOS), launched
in 1978, will be suspended indefinitely from next year. Flats already under construction
will be completed. The
Tenants Purchase Scheme, introduced in early 1998 to allow public rental tenants
to buy their flats, will also be terminated. All mixed development housing projects
- developed by the Housing Society and Housing Authority in collaboration with
private firms - will end. But
the government's Home Assistance Loan Scheme will continue to help families buy
flats on the private market. Mr
Suen stressed that the government would also continue to provide about 20,000
public rental flats a year to low-income families, maintaining an average waiting
time of three years. "The
overlap between HOS and the private residential market is getting more serious
amid a gross imbalance between supply and demand and vicious price competition
in the private residential market," he said. "The
advantages and value of the HOS are gradually diminishing, so are its role and
attractiveness. We therefore believe that government should withdraw as speedily
as possible from the property market." The
housing chief said the tens of thousands of unsold HOS flats would not be sold
to developers. The government is considering options such as converting them into
public rental flats, or using them as accommodation for university students and
native English-language teachers. There
are about 10,000 completed HOS flats not yet on sale. A further 5,898 flats already
being built will be finished next financial year, 6,450 in 2004/05 and 5,484 in
2005/06. Housing
Authority chairman Dr Cheng Hon-kwan welcomed the measures, saying: "I think
the proposals have struck a very good balance among all the competing interests
for the overall benefit of Hong Kong." But
authority member Wong Kwun said the moves effectively "declared the death
of the authority". "The government has taken away the authority's role
in selling flats, together with its major source of income. The authority will
not be able to operate or build homes unless the government injects equity to
us." Economic
professor Dr Chong Tai-leung of the Chinese University said it was a proper move
for the government to completely withdraw from the private market and it could
help Hong Kong return to a free economy. "The
government played too big a role in the property market, it is to be expected
that the government should let the market run on its own rather than exercising
influence on it," he said.
12. Freeze on land auctions leaves 37 sites and projects on ice
KENNETH
KO, SCMP 14 November 2002 A
suspension of land sales until the end of next year has taken 31 government sites
and six major railway-related property developments out of the market for the
next 14 months. They
include four housing sites originally set for auction next month and in February,
and 27 sites on the application list. Also
affected are the planned tendering of Kowloon-Canton Railway Corporation's (KCRC)
five railway-related projects and Mass Transit Railway Corporation's (MTRC) massive
Dream City project in Tseung Kwan O whose first phase was originally planned for
tender next year. Housing
secretary Michael Suen said: "To rectify the current serious supply and demand
imbalance, government has decided to stop all scheduled land auctions and call
off the two remaining auctions in this financial year. "In
addition, the application list will be suspended until end-2003. Thereafter, the
supply of new land will only be triggered from the application list." Sites
on the list will be released for sale only if a developer applies and agrees to
pay a minimum price acceptable to the government. Mr
Suen also said the government had agreed with KCRC and MTRC that no railway property
developments would be put up for tender in the coming year. A
KCRC spokesman said: "We will adjust our property development programme.
We support the government decision which is aimed at stabilising the property
market." He
said the adjustments would affect developments at stations in Tsuen Wan West,
Nan Cheong, Yuen Long, and Tuen Mun along West Rail, and the Tai Wai Maintenance
Centre along Ma On Shan Rail. The
five projects involve a total gross floor area of about 12.5 million square feet.
Analysts said more than 10,000 units were at stake. An
MTRC spokesman said it would not release any project for tender next year, considering
the current market conditions. He said the delay would not affect the company's
future earnings, as sales of projects such as Sorrento in Kowloon Station were
on schedule.
13. Sliding prices
SCMP,
14 November 2002 
14. Appeals to lift cap on home loans dismissed by minister
AMBROSE
LEUNG, SCMP 14 November 2002 Calls
from legislators to raise the cap on mortgage loans as a way of boosting property
sales and stabilising the market have been dismissed by the secretary for financial
services and the treasury. Frederick
Ma Si-hang yesterday said that the policy of capping housing loans to 70 per cent
of the property value was meant to protect banks from bad debts. He
said the guideline was not aimed at boosting housing prices or propping up the
property market. The
Hong Kong Monetary Authority introduced the cap in 1995 to cool an overheating
property market, with housing prices and sales surging to record levels. Mr
Ma was reacting to a suggestion by Liberal Party leader and Exco member James
Tien Pei-chun who said that the government should ease the mortgage cap to complement
the new measures aimed at stabilising property prices, which have been falling
due to deflation and the economic slump. Mr
Tien's party colleague, Selina Chow Liang Shuk-yee, said a party poll found that
70 per cent of flat owners surveyed were in favour of easing the mortgage cap.
"Is the government prepared to listen to people's views?" she said.
Chan Kam-lam
of the Democratic Alliance for Betterment of Hong Kong also supported a relaxation.
Philip Wong Yu-hong,
vice-chairman of the Chinese General Chamber of Commerce, said: "If you can
relax the loan-to-value percentage to 90 per cent, you would give a very clear
message that you are confident on your new measures." But
Mr Ma dismissed the call, saying the policy was originally aimed at protecting
the banking system, not the property market. "It
was not designed as a part of the measure to stabilise property prices."
Mr Ma said that if the mortgage cap was lifted, the financial risk for banks
would also increase. Mr
Tien replied that the banking risk would be reduced if the price-stabilising measures
proved successful. But
Mr Ma said there were other channels for people to apply for loans to finance
their property purchases. "I don't see any need to change an established
policy," he said.
15. Rising vacancies
SCMP,
14 November 2002 
16. Anti-speculation measures deemed obsolete
KENNETH
KO, SCMP 14 November 2002 The
easing of anti-speculation measures is aimed at giving developers more flexibility
in marketing new projects and should, therefore, stimulate sales. Housing
secretary Michael Suen yesterday announced the removal of the restriction on internal
sale and the cap on the number of units each buyer could take. Under
current pre-sale consent rules, which govern the sale of unfinished flats, developers
can reserve up to 30 per cent of a project's units for an internal, or private
sale, to anyone it likes. Before
1994, the internal sale quota was up to 50 per cent. The ratio was lowered to
10 per cent that year as internal sales were deemed to be fuelling speculation.
The internal
sale system was originally designed for developers to sell units mainly to employees
and associates. Mr Suen said: "After years of development of the property
market, the restriction on internal sale of flats is no longer serving the original
purpose. "As
flats reserved for internal sale by developers could also be sold to external
buyers, the restriction no longer fits the circumstances of the day." The
restriction that each purchaser could only buy one flat and no more than two parking
spaces would also be removed, he said. Developers
greeted the news enthusiastically, with Wharf (Holdings) assistant director Ricky
Wong Kwong-yiu calling it a "reasonable decision". "Some
families want to buy two or three units together or on the same floor for their
members. The removal [of the restriction] will eliminate unnecessary controls,"
he said. The
restrictions began to be put in place from the early 1990s, in response to rampant
speculation, and were supposed to protect genuine buyers. Most of these measures
have been relaxed or withdrawn following the property slump in recent years.
17. Tung's tinkering shows how little he has learned
ANALYSIS by STEPHEN BROWN, SCMP 14 November 2002 Published
in February 1998, the concluding paragraphs of the government's Long Term Housing
Strategy White Paper make amusing, if perverse, reading. Summarising
Chief Executive Tung Chee-hwa's 1997 Policy Address, they predicted that "a
new sense of optimism" would emerge as families satisfied home ownership
aspirations due to increased flat supply and resulting stable prices. Five
years of failed housing and lands policy stemmed from this document, yet yesterday's
much-trumpeted policy switch suggests that little has changed. Having sought to
manage market demand, supply and prices at the same time, it appears Mr Tung has
learned little, yet again committing his government to maintaining "stable
prices". Whether
this latest set of measures halts the five-year slide in housing prices misses
the point. Tinkering with an already non-functioning land supply system or tweaking
the Home Ownership Scheme is not the issue. What matters is whether a numbed population
can be made to believe that the government's property policy is credible. Yesterday's
effort does not convince. The
Heritage Foundation downgraded Hong Kong's score for overall economic freedom
on Tuesday, because of increased government interference. They were right to do
so. And still the people in power here do not seem to understand what a free market
economy is, or the role of a free market for land in such an economy. The
very fact that the administration can continue to implicitly target asset prices
in their statements undermines the very confidence that they attempt to restore.
The fact that they still talk about stabilising prices means that they care about
price levels. Such sentiments only portend some future random intervention, when
someone decides that prices are "too high". After
more than a decade of futile pulling and pushing on our Victorian levers of land
administration, the bureaucrats and politicians continue to refuse to look at
structural reforms to the supply side of the land market. Even
yesterday, when they girded their loins to give a big boost to confidence, they
could not keep their fingers out of the pie. Rather than terminate the Home Ownership
Scheme, in the translation that a number of my colleagues independently gave to
me, it was to be "indefinitely suspended". What
does suspended indefinitely mean? I presume it means that the Housing Authority
gets to keep their Lego bricks, but have just promised not to get them out of
their box until later. King
Canute sat on the beach centuries ago to show his adoring courtiers that he was
not capable of turning back the tides; to show them instead that he was merely
mortal. This
government, bereft of any political philosophy, has yet to even sight the shore,
let alone accept the fact that the tides of the market should be exploited rather
than fought. Stephen
Brown is head of research for Kim Eng Securities in Hong Kong
18. The twisting path of Tung’s Housing Policy
SCMP,
14 November 2002
[Image]
19. Tycoons united in praise of new policy
KENNETH
KO, SCMP 14 November 2002 Developers
have strongly endorsed the government's property stimulus measures which they
expect will restore public confidence and lift the economy. Cheung
Kong (Holdings), the SAR's biggest developer, gave the new policy a ringing endorsement
by announcing plans to raise prices next week by up to three per cent for its
Banyan Garden development in Cheung Sha Wan. The
developer of Kensington Green in Fanling plans to raise prices by five per cent
next year. But
most developers said they would not change the terms for property projects already
on sale. Cheung
Kong deputy chairman Victor Li Tzar-kuoi said in a statement that the government
package was good news to the property market, as it would help strengthen long-term
confidence in the sector, which was conducive to the objective of boosting the
economy. Sun
Hung Kai Properties vice-chairman Thomas Kwok Ping-kwong said: "The new policy
is back to being market driven, in keeping with Hong Kong's status as the world's
freest economy, and will help to reinforce both overseas and local investors'
confidence in the territory." Mr
Kwok said the measures would restore confidence in property ownership, create
new employment opportunities, strengthen consumer spending and speed up economic
recovery. Sino
Land chairman Robert Ng Chee Siong said: "The government has done a very
good job. The measures are excellent and definitely will boost the Hong Kong economy
as a whole and restore public confidence." Commenting
on criticisms that the measures were a form of government intervention, Mr Ng
said the government was the biggest landlord and a "natural player"
and thus would inevitably intervene in the market. The
Real Estate Developers Association said the measures would immediately address
the market glut, while affirming the government's intention to exit the property
market in the longer term. Alexander
Lui Yiu-wah, deputy managing director of medium-sized developer K Wah International,
said the land-sale suspension would definitely affect his company's efforts to
replenish its land bank. But he supported the government move, saying it was essential
in preventing prices from falling further. UBS
Warburg director of research Franklin Lam said the revised housing policy would
allow free-market forces to work. He reiterated his projection that home prices
would rise by 40 per cent in two years. However,
Insignia Brooke consultant Nicholas Brooke described the government move as "interventionist"
and an "over-reaction". He
doubted whether the measures would work and warned of a potential shortfall in
longer-term housing supply due to the land-sale freeze. Estate
agents yesterday reported some secondary-home sellers raising prices in the wake
of the announcement. Centaline
Property Agency managing director Shih Wing-ching said the individual cases had
yet to develop into a trend but he expected the stimulus package would spur the
market. Some
agents believe home-buying would increase by 15 to 20 per cent in the short term.
20. Legislators warn that halting sales will increase deficit
ANGELA
LI and MAY SIN-MI HON, SCMP 14 November 2002 Pro-democracy
legislators last night expressed deep concern that the government's housing package
would worsen the budget deficit - but others said this would not matter if the
measures revived the economy. The
Democratic Party's Albert Chan Wai-yip said the suspension of public land auctions
would "add further pressure to the serious budget deficit". Party
colleague Albert Ho Chun-yan said the package would only bring about limited and
temporary effects. "What matters most is for the government to come up with
a budget blueprint to revive public confidence. If they can't do so, it will be
of no help to the public no matter how many gimmicks they are to introduce."
Eric Li Ka-cheung,
a non-affiliated legislator representing the accountancy sector, estimated that
government income from land sales would drop a further $3 billion or $4 billion
this financial year following the policy changes. "The thing we are most
concerned by is whether the whole package of measures will stimulate the economy,"
he said. The
government originally planned to fetch about $25 billion from land premiums. However,
only about $8.3 billion has been received so far. Under the original land sale
programme, four lots of land were planned to be sold in December and February.
The drop in land
revenue has contributed to an increase of the deficit. Financial Secretary Antony
Leung Kam-chung originally estimated the deficit for the current financial year
would hit $45.2 billion. He later revised it to $60 billion, but analysts expect
it to be about $80 billion. Executive
Councillor James Tien Pei-chun, Liberal Party chairman, said his party found the
government's package worth supporting. "We should not refrain from helping
the one million-plus flat-owners here to get rid of their negative equity. It
will help boost consumption and other economic activities," he said. Chan
Kam-lam of the Democratic Alliance for Betterment of Hong Kong, also backed the
government's package. Lau
Ping-cheung, non-affiliated legislator representing the architectural, surveying
and planning sectors, said it did not matter if the budget deficit were to be
increased as a result of the imminent reduction in land sales. "This
is only a temporary pain," he said.
21. Review of tenancy laws to spur rental market
PATSY
MOY, SCMP 14 November 2002 The
housing chief has pledged to review the tenancy laws to remove "excessive
protection" for tenants in a move aimed at encouraging people to buy property
for investment and stimulating the rental market. Secretary
for Housing, Planning and Lands Michael Suen Ming-yeung yesterday told Legco a
bill would be tabled next year to give flat-owners more flexibility in reclaiming
their properties from undesirable tenants. Mr
Suen said that under the current law, flat-owners had to go through a complicated
legal process to resume their properties. "Many
of the provisions for protection of security of tenure under the Landlord and
Tenant (Consolidation) Ordinance, which was enacted more than 20 years ago, are
now outdated," he said. "Apart
from revitalising the rental market to make it more alluring to investors, the
proposed relaxation of tenancy control will give us an additional leverage to
promote the implementation of the rental allowance scheme by making available
more choices of private rental flats." Under
the rental allowance scheme, applicants for public housing who move into private-sector
flats can get rent subsidies from the government. Centaline
Property Agency senior manager Wong Leung-sing said an amended tenancy law giving
landlords more protection could help boost the confidence of investors. "Besides
looking after home-buyers, the government should also find ways to attract investors
to the property market," he said. Conveyancing
lawyer Daniel Wong Kwok-tung agreed that many people avoided buying flats for
investment because of potential problems with tenants. "Many
so-called professional tenants refuse to pay rents or to move out. They finally
may even earn compensation from the landlords who try to evict them without going
through the complicated legal process," he said.
22. Anson Chan urges respect for public's views on Article 23
AMBROSE
LEUNG, SCMP 14 November 2002 
Anson Chan said few pieces of legislation have such far reaching implications
on the freedoms of Hong Kong people as Article 23. Picture by K.Y. Cheng The
government should respect people's views and not act in an arbitrary and indifferent
manner, former chief secretary Anson Chan Fang On-sang warned yesterday as she
called for care to be taken over the drafting of anti-subversion laws. Speaking
at a dinner hosted by the Canadian Chamber of Commerce, she said: "There
is a fine line between the rule of law and rule by law. It is one that Hong Kong
should never cross." The
warning came seven-weeks into a government consultation on proposals to implement
requirements of Article 23 of the Basic Law, which aims to ban acts of treason,
sedition, subversion and theft of state secrets. Mrs
Chan - once dubbed the conscience of Hong Kong by the international media - said
the government has to go the "extra mile" when exercising its authority
especially when the SAR has yet to achieve full democracy. "Those
who exercise authority have a huge obligation to respect and to be sensitive to
the feelings of those over whom authority is exercised. "In
a society such as Hong Kong, where we place such trust in the institution and
values of civil society, we must take great care never to act, or at least to
be seen to act in an arbitrary, offhand or indifferent manner." With
reference to the Article 23 proposals, which have been criticised by human rights
watchers and legal experts as posing a threat to freedom and civil liberties,
Mrs Chan said Chief Executive Tung Chee-hwa has to take public views into account
when drafting the bill. "Article
23 presents the government with a golden opportunity to put this into practice.
I can think of few pieces of legislation that have such far reaching implications
not just for our freedoms, rights and way of living, but also for our very survival
as a major financial and services centre," she said. Acknowledging
the difficulties to balance national security concerns and safeguard people's
rights, Mrs Chan said a draft white bill should be issued and widely consulted
before a "blue bill" is tabled to Legco. She urged lawmakers to address
public concerns before passing the bill. People
want to "go about their daily lives without having the government breathing
down their necks", she said. "[People]
understand that their hard-won freedoms are not to be trifled with. That is why
they have been demonstrative and outspoken whenever they perceive any of these
freedoms and rights to be under threat." Last
night's comments on Article 23 were the first Mrs Chan has made in Hong Kong,
after she was made an honorary dame by the British Queen last week.
23. Power firms pressured as Legco urges cuts in electricity charges
MAY SIN-MI HON and ANGELA LI, SCMP 14 November 2002 Pressure
is mounting on the power companies to cut their tariffs after major political
parties joined forces yesterday to pass a Legislative Council motion calling for
a reduction or concessions on electricity charges. Secretary
for Economic Development and Manpower Stephen Ip Shu-kwan proposed including deflation
as a factor to determine tariff levels when current arrangements are reviewed
next year. The
scheme of control agreements permit CLP Power and Hongkong Electric to earn an
annual return of between 13.5 and 15 per cent on their average net fixed-asset
value. The companies
have come under pressure to cut tariffs amid concerns that Hong Kong's electricity
charges rank among the highest in the world. Seven major property developers have
also made an unprecedented public appeal for a cut in tariffs. Speaking
before the motion was passed, Mr Ip urged the two companies and Towngas to adopt
measures to help the public, which is suffering amid high unemployment and deflation.
Mr Ip said scheme
of control agreements were signed in 1993, when there was high inflation."But
do they have to earn up to the maximum level of profits?" he asked. He
said that the government had to abide by the scheme of control, a contractual
agreement. But
Mr Ip added the companies should realise that power supply is a daily necessity
for the people. "We hope they will, having considered their operating environment,
the high unemployment and deflation, understand the difficulties and heed the
expectations of public," he said. Mr
Ip said the administration would consider several factors in assessing tariffs
next year. These include the demand for electricity, operating costs, investments
made, return for shareholders, measures to improve productivity, and what consumers
can afford. The
economic services chief hoped that the two companies would adopt a long-term vision
of their business, adding the government was prepared to review the way forward
after the agreements expire in 2008. Areas
under study include integration of the power supply systems, and opening the markets
for power generation and distribution to boost competitiveness. The
motion, sponsored by Democrat Fred Li Wah-ming, was passed with the support of
the Liberal Party and the Democratic Alliance for Betterment of Hong Kong.
24. Cartoon
SCMP,
14 November 2002 
25. Lai See
CHRIS
CHAPEL, SCMP 14 November 2002 Key
man sent to increase the northern cover Big
property consultancy Colliers International has moved its regional managing director
of North Asia, Alan Liu, up to Shanghai from Hong Kong. It is a sign major property
consultants see a need to increase their focus on mainland China - a trend related
to China having joined the World Trade Organisation, and the generally dreary
state of the Hong Kong market. Mr
Liu was enthusiastic about the move: "As Shanghai continues to attract individuals
and institutions interested in putting their investment in this important commercial
centre of the world, I would like to personally attend to the opportunities that
Shanghai and the rest of China presents over the next few years." Colliers
was keen to point out that Hong Kong would remain important in its overall strategy.
The company said it expected the economies of Hong Kong, the mainland and Taiwan
to become more and more integrated following the WTO deal. As
well as handling Colliers' mainland business, Mr Liu remains responsible for the
rest of the North Asia region: Korea and the all-important Taiwan, which has invested
something like US$60 billion to US$100 billion in the mainland in the past five
years. Book mark:
Entering into
the spirit of Lai See's enthusiasm for E. Annie Proulx's book The Shipping News,
Sai Kung's self-proclaimed literary expert, freelance journalist Tim Metcalfe
offers the following review. It
is in the form of a newspaper headline, which make frequent appearances in the
book from the mind of the main character, Quoyle: "Disturbed Journalist Restores
Sense of Order and Meaning to Chaotic Life as Columnist with Small Town Newspaper
on Remote Island." Thank
you, Tim, we agree this fairly sums up The Shipping News. Let's see what headlines
other creative Lai See readers can come up with, once they have read our chain-book
copy. Footloose:
American design guru Kenneth Cole is in town. For an amusing look at how
he got started in the shoe selling business in New York, see www.kennethcole.com,
under About Us.
26. Wheeler
SCMP
14 November 2002 
27. A heavy price
Editorial,
SCMP 14 November 2002 Property
prices have fallen by 60 per cent over the past five years and few would argue
the government should still sit on the sidelines doing nothing. With more than
50,000 vacant flats on the market and over 70,000 households owning flats whose
values are less than the outstanding amounts of their mortgages, something definitely
needed to be done to break what housing secretary Michael Suen Ming-yung described
as a ''vicious cycle'' of new supplies further dragging down values. Politically,
while the drastic measures announced by the government yesterday have prompted
criticisms from the public housing lobby, they should go down well with the public
who understand it is in no one's interest for property prices to fall further.
For Chief Executive
Tung Chee-hwa, who began his first term in 1997 with a bold promise to raise the
home ownership rate from 56 to 70 per cent by 2007, having to scrap the target
must have been a difficult decision. Apart from being a complete repudiation of
one of his key policy commitments, the turnaround is an admission that his housing
policy, whose main thrust was to boost supply, has been an utter failure. How
ironic that most of the nine measures announced yesterday are aimed at reducing
supply. Yet,
although the message is clear that the market will not be flooded with more new
flats over the next few years, Hong Kong's housing policy remains muddled. The
decision to stop the further construction and sale of flats under the Home Ownership
Scheme is long overdue. However,
it is not clear if it really signals a definite retreat by the government from
the housing market. Mr Suen said the scheme would ''cease indefinitely'' from
2003; he did not say it would be scrapped. The
suspension of land sales, tendering of housing projects by the two raliway corporations
and the Tenants' Purchase Scheme are all ad hoc measures aimed at propping up
values and their long-term impact on the market is far from neutral. Five
years ago, the government dramatically boosted housing supply; five years later,
it is doing the reverse. What is there to stop it from intervening in the market
again when the measures introduced yesterday lead to a serious under-supply another
five years from now, which is not an unlikely scenario? Every
property market has its ups and downs. Thanks to over-zealous attempts by the
Tung administration to impose ''order'' on the market, Hong Kong has paid a heavy
price. Instead of smoothing over the fluctuations, it has aggravated its volatility.
The dire state
of the market now may justify the radical measures adopted by the government to
rectify a serious situation. But the extent and form of government involvement
in the housing market and the public coffers' dependence on land-based incomes
remain critical issues that need to be addressed.
28. Historic buildings need legal protection
Letter
to the Editor, SCMP 14 November 2002 The
Heritage and Conservation Committee of the Hong Kong Institute of Architects is
concerned about the planned demolition of Kom Tong Hall. The
threat to this building exposes the inadequacy of the current legal framework
for the protection of heritage buildings. This is something (along with any compensation
which should be paid to the owner, the Mormon Church) which should be urgently
addressed by the government. We
visited the Web site of the Church which talks of the loving care and attention
it pays to conserving the heritage of Salt Lake City. We
sincerely hope the Mormons will show the same respect for Hong Kong's heritage
as they do for their ''hometown''.
CHRISTOPHER LAW
Chairman
Heritage and Conservation Committee
Hong Kong Institute of Architects The
answer to the debate over the future of Kom Tong Hall is retention of the facade,
but with redevelopment of the interior.
Reasonably successful examples of
this technique are to be seen in Macau and Shanghai. Adoption
of such a compromise would help restore much of the respect felt for the Church
of Latter Day Saints by the community. Demolition
of the building, would, however, lend support to those suggesting American globalisation
pays no heed to local heritage considerations.
GEOFFREY ROPER
Mid-Levels
29. Sino Land chairman rejects reorganisation options
KENNETH
HO, SCMP 14 November 2002 Sino
Land yesterday ruled out any restructuring of the three listed companies controlled
by the family of chairman Robert Ng Chee Siong. In
response to questions about the recent reorganisation moves by some property companies,
Mr Ng said after Sino Land's annual general meeting that it had no plan to do
so. Sino Land
is majority held by Tsim Sha Tsui Properties which is controlled by the Ng family.
Sino Hotels is controlled directly by the Ng family. Earlier,
Henderson Land Development proposed privatising its investment holding unit Henderson
Investment. New
World Development also raised an asset reshuffle among companies under its control.
There was speculation
that other property companies might also consider taking advantage of market conditions
to restructure their businesses. Meanwhile,
Mr Ng expressed strong confidence in the property market, citing the company's
bid for Kowloon-Canton Railway Corp's (KCRC) Ho Tung Lau project in Sha Tin yesterday.
He estimated
that the construction cost would reach HK$1,400 to HK$1,500 per square foot, higher
than the average, because it would involve the removal of railway tracks on the
site. This estimate
would translate to a total construction cost of nearly HK$2 billion. The other
bidder for the Ho Tung Lau project is Cheung Kong (Holdings). KCRC
expects to announce the tender result later this month. Mr
Ng said there was long-term demand for housing as an estimated 30,000 marriages
per annum were expected in the next 10 years. Mr
Ng said the local economy was not too bad despite the budget deficit concerns,
citing strong performance in re-exports and tourist arrivals, especially those
from the mainland. Sino
Land executive director Benjamin Lam Yu-yee said the group would release several
projects for sale over the coming year. They
included The Cairnhill joint venture in Tsuen Wan, another joint venture development
in King's Park, a Yuen Long project and the Hang Hau MTR Station development in
Tseung Kwan O. He
said the sale programme would depend on the overall market conditions and discussions
with partners for joint venture projects. However,
Mr Ng said the sale schedule would also depend on the construction progress and
pre-sale consent application approval, adding that the group was not in a hurry
to sell.
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