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The following is issued on behalf of the Housing Authority

The Housing Authority welcomed the Government's announcement today (5 June, 2002) that the sale of subsidized flats would resume and the certainty provided by the Government's clear statement of policy.

The Chairman of the Authority, Dr Cheng Hon-kwan, agreed that it is now the right time to resume sales as the ten-month moratorium and the earlier review of the eligibility criteria for the Home Ownership Scheme (HOS) had substantially removed the overlap between the public and private property markets.

"We welcome the Government's re-affirmation of the value of the HOS and both its setting of a more limited long-term sales level and a greater reliance on loans. This will provide a clear direction to the market," Dr Cheng remarked.

"As the Chief Secretary for Administration has indicated, we will sell around 4,900 flats in two phases in the next twelve months following the expiry of the moratorium. The Authority's Home Ownership Committee will meet later this month to determine pricing and other details of the first phase."

Depending on market conditions over the next few years to 2005/06, we will take a cautious and considered manner in deciding on the level of sales, which will be capped at no more than 9,000 a year, Dr Cheng added.

"This is in line with the thinking and sentiment of Housing Authority Members who, at a brainstorming session late last month, agreed that HOS sales should be responsive to market conditions and avoid any overlap with the private property market."

Looking ahead, Dr Cheng said the Authority remains committed to the provision of adequate assisted housing opportunities to needy families and would offer sufficient loans to satisfy the aspiration for home ownership of families within the relevant income limits.

End/Wednesday, June 5, 2002

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