Why should we limit the proportion of green housing?
The Chairman of the Housing Authority Subsidised Housing Unit, Mr Wong Wai-fai, said recently that the Government should introduce a ceiling on green housing. Otherwise, the waiting time for public housing will become longer. Of course, the green home is simply to withdraw some units from public housing and sell them so that the public can be the owners. However, strictly speaking, before the land premium is paid, part of the title still belongs to the government.
Green homes and HOS flats are basically the same except for the various restrictions on applying for thresholds and selling. They are the same as those who cannot afford to buy private buildings. There are many people who support this policy. There are also many people who oppose it. In the final analysis, property prices have been rising. The public certainly wants to be a landlord and enjoy asset appreciation. However, once property prices fall, there is a risk of negative assets.
When property prices have risen for many years and people who cannot afford private buildings, the demand for government-subsidized buildings has naturally increased. It is like drawing a house or green house. However, these subsidized buildings are not private buildings. Before the land premium is paid, the public does not fully own the private property rights and there are restrictions on the sales period. Therefore, when property prices fall, it can be expected that the supply and demand of green homes will be completely different than that of private buildings. .
Huang Yuanhui said that increasing the proportion of green housing will actually increase the waiting list for public housing. This is not difficult to understand. However, in-depth discussion, in fact, the establishment of green homes at the same time does not reduce the supply of private buildings? How green housing affects the supply and demand of private buildings can be very difficult to calculate. When property prices rise, the public may think that it is better to increase green housing than to increase private housing. But when property prices fall, I believe their ideas are different.
The difference between green and private buildings, in addition to subsidies for property prices, there are also a large number of restrictions on buying and selling. These restrictions will greatly affect supply and demand. The Lion Rock Institute certainly believes that private property rights and free markets can most effectively regulate supply and demand and allocate resources.
Now that the public is beginning to worry about falling property prices, the government will abolish green homes because this policy will indeed encourage some people to buy some properties with a lot of restrictions and increase their chances of negative assets. I believe that Huang Yuanhui understands this clearly. Therefore, it is recommended that the Government reduce the proportion of green housing in order to avoid the purchase of green residents who are trapped in the system when property prices fall.