The Statement on Housing Policy announced by the Secretary for Housing, Planning and Lands in 2002 set out three major guiding principles of the Government's housing policy:

Following the Government's announcement on the repositioning of its housing policy, the Hong Kong Housing Authority (HKHA)² has been realigning its activities with the new policy agenda and priorities. It has ceased the sale and production of the Home Ownership Scheme flats, terminated all housing loan schemes and listed The Link Real Estate Investment Trust (The Link REIT) in November 2005 to divest itself of 180 retail and car parking facilities. The core function of the HKHA now is to provide subsidised rental housing to those who cannot afford to rent accommodation in the private market.

2

The HKHA, established in 1973, is a statutory body responsible for implementing the majority of Hong Kong's public housing programmes. It plans and builds public housing for renting to low-income people. It manages public rental housing estates, interim housing, transit centres, flatted factories and ancillary commercial and community facilities. It acts as the Government's agent for clearing land, preventing squatting and implementing improvements in squatter areas.