Tide turns for housing scheme

The family of "Uncle Four" Lee Shau- kee paid a record price to bag a scarce, prime site on The Peak to build villas for their personal use.

While the HK$1.82-billion deal may raise some eyebrows in view of the fact the bidding was far more spectacular than what was seen at last week's auction for the Tung Chung site that fetched a base price amid lukewarm response, it helps to show there are really distinct segments in the housing market.

Yes, there will always be people with the ways and means to pay a premium price for anything scarce, and therefore, valuable and highly coveted.

However, what concerns the masses more is Hong Kong's limited supply of small to medium-sized flats. It's clear the government is focusing on this end of the property market. And it seems the effects of the current crackdown on the market is becoming evident in certain private housing estates - such as Tin Shui Wai's Kingswood Villas, where vendors are willing to lower prices.

Furthermore, there is the ongoing public consultation on whether it will be necessary for taxpayers to subsidize home ownership. As I've said, subsidies can come in many forms. The one most discussed by the community is the familiar Home Ownership Scheme.

Should the scheme be resumed? This is an issue warranting delicate handling. HOS has a prominent part in local housing history. When the former Tung Chee-hwa administration scrapped it to help stabilize the volatile housing market, the decision was made carefully. So, there has to be enough support if the current government wants to reverse course.

The consultation exercise could be a tactic to buy time. It's intriguing to note when Chief Executive Donald Tsang Yam-kuen launched the consultation, he was quick to point out the government's objection to resuming HOS wasn't an irreversible policy.

Then, political heavyweights - and even some developers - began to sound more flexible about the scheme. Yesterday, MTR Corp chairman Raymond Ch'ien Kuo-fung added his support to resuming it. He even went further by suggesting the government has the responsibility to let young people have the expectation of owning their own home.

I get the distinct feeling the tide is already turning in favor of HOS.

Society has truly changed. In the past, families were used to cramming in public rental housing, or partitioned units, while children made do with tiny cubbyholes.

But now, many young people live with parents in private housing, and have grown accustomed to more spacious environments. Unlike the older generation, they're reluctant to accept smaller digs after becoming young adults.

So would it be realistic to expect those growing up in Tai Koo Shing to switch to a small flat in Kingswood Villas in the far north of the New Territories, despite lower prices there?

Guess what will be the outcome of the public consultation? I doubt if it will be anything other than overwhelming support for resuming HOS, in light of the growing sentiment.

Barring the unpredictable - including a housing market collapse - it's almost a foregone conclusion that Tsang will be announcing the scheme's revival in his next policy address.


英文虎報 Central Station | By Mary Ma