The Government has reaffirmed its commitment to the 10-year public housing supply target by injecting $45 billion into the Housing Reserve.
Announcing the decision today, the Financial Services & Treasury Bureau said the Government has an obligation to ensure the Housing Authority is adequately funded to meet the target.
Established last year, the Housing Reserve allows the Government to start saving for housing while it can afford to.
It also has a stabilising effect by avoiding a big dip in the fiscal position when the Government’s support and the Finance Committee’s funding approval are sought.
For the five-year period ending 2018-19, construction expenditure for the Long Term Housing Strategy’s production targets would be about $20 billion per annum and the authority’s reserve position would deplete at around $10 billion per annum.
The initial $27.5 billion earmarked for this purpose last year now measures $29 billion given the accrued interest, the bureau added.
The Financial Secretary has instructed the Monetary Authority to set aside about $45 billion in investment returns on the Government’s fiscal reserves this year for further injection. The authority is also responsible for the Housing Reserve’s investment.
HK Gov’t injects extra $45b for housing.