Government to see $3.3b profit from deal on new staff quarters
The government stands to make an on-paper profit of $3.3 billion after it bought 4,304 unsold subsidised flats to house disciplined services members now living in quarters.
Housing, Planning and Lands Bureau officials revealed yesterday that 15 department quarters comprising 4,293 flats will be emptied. The flats, on 15 sites, are valued at $6.32 billion.
The departmental officers will move to the four estates under the Home Ownership Scheme (HOS). The government will pay the Housing Authority $2.75 billion for the Kwai Chung and Yau Tong blocks.
In addition, the government will spend $250 million to demolish the existing quarters and fit out the HOS flats to bring them in line with the standards for departmental quarters.
Deputy Director of Housing Tam Wing-pong said the 15 sites, once vacated, would become available for sale.
'The majority of existing departmental quarters are sub-standard, therefore they will be demolished for alternative use. That they are on prime locations means they could fetch premium values,' he said.
The best sites among the staff quarters are located in Ho Man Tin, North Point and Wan Chai.
In addition to the on-paper profit, the $2.75 billion purchase price will be paid in 10 annual instalments in an interest-free deal to the Housing Authority.
'The Housing Authority will not make a profit or loss out of this,' said Mr Tam. 'Therefore there would be no question of the authority making a profit on taxpayers' money.'
David Hooi Wing-kee, principal management services officer of the Security Bureau, said the initial response from departmental officers on the proposed move had been favourable.
'Most of the existing quarters are between 30 and 40 years old, and many of them still have squatting toilets. Also, the officers to be relocated will have a choice of four estates,' said Mr Hooi.
With the sale of the 4,304 flats for use as departmental quarters, 5,960 surplus HOS flats remain unsold. The Housing Authority has approved the transfer of 2,920 flats to the public rental housing sector.
The authority is also in discussions with a third party on the feasibility of converting the remaining 3,040 flats into guesthouses.
The government will seek funding for the HOS flats from the Legco Finance Committee on July 2.
PRIME SITES
Tanner Road police married quarters with 669 flats
Western Police Station married quarters with 104 flats
Ho Man Tin police married quarters with 470 flats
Kwai Chung married police quarters with 819 flats
