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Written by: Zhang Jiamin
2020-01-10 13:32
Last updated: 2020-01-10 13:32The Housing Authority's Finance Sub-Committee today (10th) reviewed this year's budget and the financial situation for the next four years. According to the latest financial forecast of the Housing Authority, fiscal reserves will fall from about 43 billion yuan at the beginning of April 2019 to 35 billion yuan at the end of March 2024.
The Chairman of the Finance Committee of the Housing Authority, Mr Chan Ka Lok, said that the financial situation of the Housing Authority was sound but not "flooded". As for the reduction in construction costs of public housing units, he said that due to the large scale of some projects and the difference in bid prices, unit costs have decreased. He also stated that he did not plan to use 82.4 billion yuan of housing reserves.
According to the latest financial forecast of the Housing Authority, the estimated construction expenditure from 2019/20 to 2023/24 is 115.7 billion yuan, an average of 23.14 billion yuan per year, which is higher than last year's forecast of 21.8 billion yuan. According to the Housing Authority, the budget for this year is calculated based on the ratio of public housing and private housing in 1973, and the number of public housing in the next 10 years will exceed 300,000 units. In addition, the preliminary construction period of some construction projects in the next 10 years will begin in nearly 5 years. Foundation works, etc., increase construction costs.
The average cost of public housing units fell
Benefiting from the changes in bidding prices, the construction cost of a public housing unit this year is about 660,000 yuan, and the construction cost of a HOS unit is about 810,000 yuan. Compared with last year's cost, it dropped by 140,000 yuan and 10,000 yuan respectively.
Chen Jiale described the HA's financial stability. (Photo by Zhang Jiamin)
Housing Authority closely monitors public housing adjustment
The Chairman of the Housing Authority's Finance Sub-Committee, Mr Chan Ka Lok, said that by 2024, the fiscal reserves will be $ 35 billion, describing the financial situation as sound but not "flooded". As for the decline in the cost of public housing units, he said that the scale of some public housing projects in the next 5 years will reduce the average unit cost. He also said that the cost of housing construction is expected to rise, but it has been properly reflected in the financial forecast for the current year, plus the income support costs of sales units, and has no plans to use the housing reserve for the time being. In response to social events, the Housing Authority announced earlier that it would provide rent reductions to merchants. He said that it would have a certain impact on finances and would be reviewed in the light of various factors. As the Housing Authority will adjust public housing rents this year, Chen Jiale said that the fiscal budget is formulated assuming that rents are unchanged, and changes in rents are affected by different factors. The Housing Authority will closely examine the impact of public housing rent adjustments on finances.
The Financial Secretary, Chen Maobo, announced in last year's Budget that he would roll back the housing reserve that has been rolled up to 82.4 billion yuan to the fiscal reserve in four years. Chen Jiale said that the government currently reserves the same amount in the fiscal reserves for the development of public housing, and considers that there is not much difference between the two. The Housing Authority will review the relevant budget at the General Assembly on January 20 and submit it to the Chief Executive for approval.
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