Panel on Housing
Sandwich Class Housing Scheme
This paper advises Members of the measures taken by the Hong Kong Housing Society to assist the purchasers of Sandwich Class Housing Scheme (SCHS) projects.
2. The Government has pledged to build a total of 50,000 flats by 2005 under the SCHS. So far one project (1,024 flats) has been completed, six projects (4,930 flats) were pre-sold and another two projects (2,168 flats) will be put up for pre-sale in April. The position is at Annex
3. Some purchasers of the six pre-sold projects, which are due for completion in the latter half of 1998 and early 1999, have indicated that due to the downturn of the property market in recent months, they have experienced difficulty in obtaining mortgage loans.
Housing Society's measures to assist purchasers
4. The Housing Society has been liaising with banks to secure their support to provide adequate mortgage to purchasers. The following measures would be adopted --
- if banks provide mortgages of up to 80% of the selling price, the Housing Society will share their losses in default cases within the first five years. Specifically, during this period, the Housing Society will cover the banks?risk on the portion of loans relating to the difference between the banks?valuations of the flats and the selling prices; and
- if banks provide mortgage loans at their best mortgage interest rate, but undertake to charge only prime rate for the first three years, the Housing Society will compensate the banks for the difference in the interest income they receive during that three year period.
5. The Housing Society has already secured the support of a number of banks for the new arrangements. It will use its own funds for the financial arrangements made.
6. It is in the public interest that the Housing Society continues to implement the SCHS successfully. The new arrangements render a pragmatic solution to deal with the current situation.
AnnexSandwich Class Housing Scheme
Summary of Projects
|Project||Locality||No. of units
|Completed||Tivoli Garden ||Tsing Yi
|Park Belvedere||Ma On Shan||882
|Marina Habitat||Ap Lei Chau ||992
|Radiant Tower||Tseung Kwan O||704
|Hibiscus Park||Kwai Chung||420
|The Pinnacle||Tseung Kwan O||1,424
|Highland Park||Kwai Chung||1,456