Market revival fears 'put 3,000 flat sales on hold'
A PLAN to switch more than 3,000 sandwich-class flats to the private market has been put on hold amid fears the move will upset the property market revival, according to a source close to the Housing Bureau.
The Housing Society on June 20 announced its plan to change three new sandwich-class projects - 3,146 flats - into private housing in a move to help stabilise the then-flagging market. The date for sales had not been determined, pending discussions with the Government.
But the source told the Sunday Morning Post yesterday the bureau had put the move on hold because of a 'sudden change' in the market as developers appeared to adopt a more aggressive sales strategy.
The number of transactions jumped 55 per cent this month after Chief Executive Tung Chee-hwa confirmed his 85,000-homes-a-year target had been dropped.
'The Government is still unable to make up its mind because it does not want to see an oversupply,' the source said.
'We can see developers will continue to put their flats on the market in coming months. There is no point in the Housing Society putting another 3,000 private flats up for sale - it would clash with developers.'
A bureau spokesman said the Government was still considering the proposal.
The society refused to comment but confirmed it had not received any signal from the Government on the sale of the flats.
The three projects involve 1,526 new sandwich-class flats at Serenity Place in Tseung Kwan O, 1,124 flats in Ma On Shan and 496 flats in Sheung Wan.
Sandwich-class flats are normally sold for 20 to 40 per cent less than the market price.
