The Housing Authority on Thursday said it projected a surplus of around HK$5.7 billion for the 2022-23 fiscal year, about 40 percent lower than the amount predicted earlier.

“Partly it is reflection that this year we have less [Home Ownership Scheme flats] being assigned, so we have received less proceeds coming from the HOS,” said Chan Ka-lok, chairman of the authority's finance committee.

“As we know, the last couple of years, the Housing Authority had a lot of relief measures and concessions to help out the tenants and also the commercial tenants, so this [also] had an effect on the surplus,” he added.

Speaking after the committee endorsed financial forecasts for the next five years, Chan said estimated construction expenditure will go up from HK$17.6 billion in 2022-23 to HK$40.6 billion by 2026-27, in order to meet the housing supply target.

He added that the organisation’s cash and investment balance is predicted to go down from HK$59 billion in April 2022 to HK$49.7 billion by March 2027.

Chan said the forecasts cover the planned construction of around 94,000 flats in the next five years, but do not include the long-term housing supply projection announced by Chief Executive John Lee in his last policy address.

The committee chairman said the authority will ask the government for more funding if necessary, but it does not see a need to do so at this stage.

Chan also stressed that the financial status of the authority will not affect the level of public housing rents.

“The determination of the rental has nothing to do with the financial situation of the Housing Authority. Every two years, we review the affordability of the tenants based on their income, and then make any appropriate adjustments,” he said.

The budget and financial forecasts will be discussed by members of the authority on January 16 before they are submitted to the chief executive.