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The following is issued on behalf of the Housing Authority:
The Housing Authority's (HA) Subsidised Housing Committee (SHC) today (February 7) approved the sales arrangement for all remaining 832 surplus Home Ownership Scheme (HOS) flats under Phase 7.
The surplus HOS flats under Phase 7, comprising a total of 825 flats in Tin Chung Court at Tin Siu Wai and seven others scattered in five HOS courts, are priced with reference to what eligible buyers can afford as measured by their mortgage repayment ability.
By applying a price discount of 30 per cent to the assessed market values, the prices of the flats range from the lowest at $1,194,500 in Tin Chung Court, Tin Siu Wai to the highest at $3,495,600 in Broadview Court, Hong Kong South (see table). More than 80 per cent of the flats offered for sale are priced at $2 million and below.
"In setting the average market value of the surplus HOS flats, reference has been made to sale transactions of comparable private and HOS developments in the vicinity while the difference in age, location, design and facilities, etc, between them has also been taken into account," the spokesman said.
"For blocks K and L of Tin Chung Court, due regard has been given to the fact that these blocks had been completed some years ago, although they have not been occupied before," the spokesman said.
"For returned flats, our pricing is based on the assumption that the flats are in average condition with no particular adjustments to reflect the difference in the internal decorations or conditions of individual flats," he added.
The Committee also decided to maintain the ratio of 60:40 for quota allocation between Green Form (GF) and White Form (WF) applicants and the flexibility to switch the unused quota between these two categories of applicants.
The priority for flat selection between GF and WF applicants will follow the quota allocation ratio of 3:2. The order of priority for flat selection by category of applicants will also be maintained, with family households having the priority over one-person households.
To align with the residence requirement for the "Extension of the HOS Secondary Market Scheme to WF buyers" scheme, WF applicants under Phase 7 must have lived in Hong Kong for at least seven years on or before the closing date of the application, and his/her stay in Hong Kong not be subject to any condition of stay (except the condition on limit of stay).
"To streamline the fee collection procedures, a one-off application fee of $200 will be charged by the HA upon application, replacing the two-tier fee structure adopted before," the spokesman said.
Noting the commencement of the Residential Properties (First-hand Sales) Ordinance in April and that a number of flats among the 832 flats for sale under Phase 7 are first-hand properties, the SHC agreed that the sales arrangement for those first-hand flats, where appropriate, should follow the requirements under the Ordinance as far as practicable, although not all the provisions are applicable to the HA even when the Ordinance comes into operation.
"The sales brochure covering blocks F,G,H,J,K and L of Tin Chung Court, the price list, the document setting out the sales arrangements and the Vendors' Information Form setting out information on management matters and Register of Transactions will be made available according to the requirements of the Ordinance," the spokesman said, adding that while a show flat will not be provided, a photo album containing photos of the interior of the flats will be available for public viewing and mailed to those who have submitted applications. Purchasers can also view their selected flat prior to signing the Agreement for Sale and Purchase (ASP).
A one-year defects liability period from the respective dates of assignment will be provided for all the 645 rescinded or unsold flats after defects rectification and maintenance works to bring them up to a reasonable standard before handover to purchasers, while the remaining 187 returned flats will be sold on an "as-is" basis.
In line with HA practice since 2006, for the flats in blocks K and L of Tin Chung Court, a 20-year structural safety guarantee (SSG) will be provided from the date of commencement of flat selection. The SSG will also be 20 years for other scattered flats in Tin Shui Wai and 10 years for those in other districts, counting from the date of building completion of the respective blocks.
Applications for the purchase of the surplus HOS flats under Phase 7 will be invited at the end of March and balloting is expected in mid-May. Selection of flats by successful applicants is scheduled to start from June. Further details about applications will be announced next month.
In view of the fact that the HA's dispute over management fees with the owners of Tin Chung Court may lead to litigation proceedings, the HA will make full disclosure of the dispute and the consequence of the potential encumbrance on title in the sale documents, particularly in the sales brochures and the ASP. In accordance with the provisions of the ASP, the HA will indemnify the purchasers and their successors and assign for any sums of money ordered to be paid by the court or agreed to be paid by the HA in respect of the management fees in dispute, including any interest, costs and expenses.
"In case purchasers, after signing the ASP, raise requisitions and do not wish to complete the purchase on account of title issues or any potential/actual litigation in relation to the management fees dispute, the sale may be cancelled and the HA will return all monies paid by the purchasers without interest, costs or compensation," the spokesman said.
Ends/Thursday, February 7, 2013
Issued at HKT 19:32
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