Sandwich Class Housing Scheme

The Sandwich Class Housing Scheme was introduced in 1993 to help
families with a monthly income of between $20,001 and $40,000 buy their
own homes. In 1997, the lower and upper limits were revised to $30,001
and $60,000 respectively. It comprises a Loan Scheme and a Main
Scheme, both of which are administered by the Housing Society.

The Loan Scheme, with a grant of $3.38 billion from the public funds,
will help 7 500 families buy their own homes in the private sector.
Successful applicants can borrow up to 25 per cent of the flat price or
$550,000, whichever is the less, to buy a property no more than 20 years
old and worth not more than $3.3 million. The loan is repaid in 120 equal
instalments starting from the fourth year after the loan is made. Interest is
charged at 2 per cent a year. By the end of 1997, 4 500 loans worth $2.1
billion had been granted.

The Main Scheme involves the construction of flats which will be sold to
eligible applicants at discounted prices but subject to a five-year resale
restriction. The land is granted to the Housing Society on concessionary
terms and this is reflected in the selling prices of the units. In all other
aspects the flats are comparable to those built by the private sector. The
scheme is on target to produce 50 000 flats by 2005.

Currently, 1 024 flats on Tsing Yi have been completed, and another
4 930 flats have been sold to eligible families. Suitable sites for this
purpose will continue to be indentified.

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