80,000 more flats available if resale regulations eased

PUBLISHED : Thursday, 04 March, 1999, 12:00am
UPDATED : Thursday, 04 March, 1999, 12:00am

An extra 80,000 flats in the Government's two major housing schemes will be released on to the market if lawmakers relax resale restrictions this month.

The Executive Council yesterday approved amended resale restrictions for flats under the Home Ownership and Private Sector Participation Schemes, allowing owners to sell their flats on the open market after five years instead of 10.

'The relaxation is in line with those under the Tenant Purchase Scheme because these are all subsidised flat-sale schemes administered by the Housing Authority,' a Housing Bureau spokesman said.

Under the proposal, flats in the three schemes can be sold to the housing body at the original purchase price within two years if buyers' financial conditions change.

After two years, the flats can be sold to the authority at assessed market value, or to a public rental tenant at a negotiated price.

'The turnover of HOS and PSPS flats can be increased by relaxing the resale restrictions, helping to meet the demand for subsidised home-ownership flats and freeing public rental flats for reallocation to people in genuine need,' the spokesman said.

The relaxation is expected to bring an extra 80,000 flats on to the open market and 16,000 flats on to the secondary market.

The proposal to amend the Schedule to the Housing Ordinance will be submitted to the Legislative Council next week.