Housing Authority predicts HK$1.1bn deficit
The Housing Authority is expected to log a deficit of HK$1.1 billion in its rental housing for the next fiscal year, according to its latest budget released on Monday. The chairman of the authority's finance committee, Billy Mak, explained that this projection is based on the assumption that rents will remain unchanged.  Mak added that the government will review and adjust public housing rent in the third quarter of this year, but the extent of the adjustment is still unknown. Despite the anticipated deficit, Mak said the authority's operation will not come under pressure. "In the short run, we don't have the pressure, because we do have some reserves on hand, which is sufficient to support the coming year's construction plan." However, Mak said the authority is expected to face a surge in expenses in the long run, as it fulfils the government's goal of offering 300,000 flats over the next decade.