Housing Supply
147. The Government has identified sufficient land for the provision of about 360 000 public housing units, around 20 per cent higher than the supply target in the Long Term Housing Strategy, which will be able to meet the demand for about 300 000 public housing units in the next ten years. However, as the supply of housing land is not evenly distributed across each year, and land creation takes time, there is still a shortage of land ready for public housing development in the short run. To fill the short-term gap of public housing supply in a timely manner and to improve the living conditions of people living in inadequate housing, the Government has identified eight sites for the construction of Light Public Housing.
148. On transitional housing, as at end-2022, about 7 000 units have been put into service. It is expected that about 14 000 additional units will be coming on stream in the next two years.
149. To promote public-private partnership, the Pilot Scheme on Private Developer Participation in Subsidised Housing Development announced in 2022 Policy Address encourages developers to build subsidised sale flats for eligible persons to buy at a specified discount rate from the market price. We are currently formulating the policy framework of the pilot scheme, details of which will be announced later this year.
150. For private housing, it is estimated that the completion of private residential units will average over 19 000 units annually in the five years from this year onwards. As at end-2022, the potential supply of first-hand private residential units for the next three to four years is expected to remain at a relatively high level of about 105 000 units.
Adjustments to the Computation of Stamp Duty
151. The current demand-side management measures for residential properties (commonly known as "harsh measures") will remain unchanged.
152. Last year, more than 90 per cent of buyers of residential properties were first-time buyers. Having considered that no adjustments have been made to the value bands of the ad valorem stamp duty payable for the sale and purchase or transfer of residential and non‑residential properties (Rates at Scale 2) since 2010, I have decided to make adjustments in this regard, with a view to easing the burden on ordinary families of purchasing their first residential properties, particularly small and medium residential units. Details of which are set out in the supplement to the Budget. Such adjustments shall take immediate effect under a Public Revenue Protection Order published in the Gazette today. It is anticipated that this measure will benefit 37 000 buyers and cost the Government approximately $1.9 billion per year.
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