Housing Authority: bigger budget surplus expected, but reserves may be tapped after five years
Public housing rentals are expected to remain unchanged while construction costs will rise
The publicly funded housing provider expects a bigger surplus for the next financial year due to rental increases and the provision of more subsidised flats for sale.
The Housing Authority’s projected surplus for the 2017-18 fiscal year increases from HK$4.9 billion in the current cycle to HK$5.58 billion, as a result of a 10 per cent rise in public housing rentals in September last year and more subsidised flats for sale being made available in the coming years to meet the government’s long-term housing target.
But the authority expects its total fiscal reserves to fall from the current level of HK$37.9 billion to HK$18 billion by 2020-21.
The trend is based on the assumption that public housing rentals will remain unchanged while construction costs will continue to rise.
The total construction cost from fiscal 2016-17 to 2020-21 is expected to reach HK$117.8 billion, with costs in the coming year totalling HK$23.7 billion.
