9 January 1997
Clerk to the LegCo Panel On Housing
(Attn.: Mrs. Vivian Kam)
Legislative Council,
8 Jackson Road,
Central,
Hong Kong
Dear Mrs. Kam,

LegCo Panel on Housing
Special Meeting on 31 January 1997

Thank you for your letter of 25 January.

Distribution of demand

We are unable to give a breakdown by region for the private housing flat requirement. Of course, developers will choose where and when to build flats to meet private housing demand, depending upon various factors including the availability of serviced land and market conditions.

For the public housing that requirement, we are only able to give a breakdown by region for demand generated by the Comprehensive Redevelopment Programme (since we aim where possible to met this generated demand in the same locality). The Comprehensive Redevelopment Programme accounts for 30% of demand for public housing in the first period (1995 - 2001) and 11% in the second period (2001 - 2006). Within each period, the geographical distribution of demand is estimated to be as follows -

	Flat Production Requirement
	1995 - 2001	2001 - 2006
Hong Kong	6,100	4,400
Kowloon	49,000	16,100
New Territories	24,900 ______	- ______
	80,000	20,500

Rent increases

We propose that rents for existing public rental estates should be increased gradually to achieve median rent-to-income ratios of 15% or 18.5% overall over the period to 2006. We do not propose that every estate should achieve these targets (for the relevant space allocation standard), as we need, in fairness, to take account of relative estate values. For this reason, it is not yet possible to give indicative rent increases for individual estates (whether newer or older estates), as the level of increase will depend upon various factors, including a detailed assessment by the Housing Department of the current and future relative value of estates, and the future income profile of individual estate populations.

In the Consultative Document, we have asked the Housing Authority to consider our proposal to raise rents to a more realistic but still affordable level. In doing so, it will of course take account of public views expressed in the consultation period, as well as make the various technical assessments required. But it is important to emphasise that the existing Rent Assistance Scheme provides and will continue to provide relief for low income families facing genuine financial hardship. We will continue to review and, where necessary to revise the income limits and ratios to ensure that adequate relief is available to families in need.

Attendance

The following officers will attend the special meeting.

Mr. Andrew Wells	Deputy Secretary	Housing Branch
Miss Sandy Chan	Principal Assistant Secretary	Housing Branch
Miss L.K. Lam	Chief Assistant Secretary	Housing Branch
Mr. Stanley Wong	Principal Assistant Secretary	Planning Environment and Lands Branch
Mr. S.M. Lau	Government Town Planner	Planning Department
Miss Helen Chiu	Senior Housing Manager	Housing Department

Yours faithfully,
(Mr. Andrew R. Wells)
for Secretary for Housing
c.c. SPEL (Attn.: Mr. Stanley Wong)
D of P (Attn.: Mr. S.M. Lau)
D of H (Attn.: Mr. Tony Miller)

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