Govt To Boost Subsidised Flats Supply

The Government has to increase land supply for the construction of subsidised sale flats, Financial Secretary Paul Chan said. 

Responding to residents’ questions on his 2019-20 Budget during a phone-in radio show today, Mr Chan said the Government has to provide assistance to citizens in purchasing flats as current property prices are not affordable for most people.

He said the adjustment of the public-private flat ratio from 60:40 to 70:30 will help shift the demand for private flats to subsidised sale flats.

Together with the newly launched Starter Homes pilot project, 80% of citizens will be eligible to buy subsidised sale flats.

Responding to a question on why the Government is not offering measures to help those who are renting homes, Mr Chan said this would give landlords incentive to raise rents.

The Budget also proposed to allocate $20 billion to purchase 60 properties in providing welfare facilities, Mr Chan said, adding the Government will not blindly purchase properties without considering the price.

On lowering the ceiling for the salaries tax reduction this year, Mr Chan said the Government will spend more than $40 billion on overall measures to relieve people’s burden.

He said the amount accounts for 70% of the surplus, reflecting the Government's willingness to invest.