Beanie Shuen 10429492Ida Ho 10418733

Insufficient supply from private market Major developers focus on luxurious housing

projects Private housing exceeds the affordability of

most citizens

24 land sales on 2011 16 were for residential use Price per square feet ranged from $4,000 to

over $10,000

According to the Quarterly Report on General Household Survey conducted by Census, the median monthly household income was $19,600 for a household size of 3 persons

Source from: http://www.statistics.gov.hk/publication/stat_report/labour/B10500012011QQ02B0100.pdf

Example◦ Family of 3 persons, monthly income = $20,000◦ To purchase a flat cost at 2.5m◦ Deposit = 2,500,000 x 30% = $750,000◦ Remaining 70% by mortgage◦ Interest rata of 3% for 20 years◦ Monthly installment = $9,700

To relax the limit of the household income - income of average household size in 3

persons was $19,600 - income limits for a 3 person’s family was

$16,063 effective on 1st April 2011 - increase the limit to around $20,000

To adjust the quota allocation ratio between the Green Form and White Form applicants

- the latest current ratio of the green form and white form is 60:40

- Increase the proportion of White Form applicants for more than 50%

Speed up the process of the Home Ownership Scheme

- plan to release the housing on around 2016-17

- 1st year -> 2500 flats and target 5000 flats/year

- 50000 number of marriage/year - investigating more sites - make it more tightly

Repealing the My Home Purchase Plan - provide around 15,000 number of flat on

2016 - ridiculous assumption

improving the social rented sector providing more homes at a price they can

afford re-allocated the ratio speed up the process