The remaining 2,170 are returned flats scattered in various parts of Hong Kong Island, Kowloon and the New Territories, including 376 in Hong Kong East, 433 in Sha Tin and 511 in Tseung Kwan O.

The sale arrangements, which will be tabled for discussion in the authority's subsidised housing committee on Thursday, are expected to generate HK$1.13 billion after expenses.

Under the proposal, all the flats are to be offered at a 30 per cent discount to the market price in their areas. But prices of some of the more attractive flats will be 4 to 5 per cent higher than in January.

The most expensive flat is in Tung Yuk Court in Shau Kei Wan. The 650 sq ft returned flat is expected to be priced at HK$2,472,900 because it is on a high floor and has a sea view.

A Housing Authority source expected an enthusiastic reaction to the sale because of the wide range of flats on offer.

'The variety in size and price provides more choices and can suit different tastes of the interested buyers,' the source said.

'The long-awaited sales of the HOS flats in Hong Kong East may also arouse more interest.'

In the January sale, there were more than 12,000 applications for the 3,056 flats available. It was the first sale of the subsidised homes since they were frozen four years ago.

The source said digital photographs of the interiors of all returned flats to be sold in August would be shown on the Housing Authority's website.

'It is to allow prospective purchasers a feel of what the used flats are like before they can actually go and see it,' the source said.

Special viewing tours to the designated returned flats in eight of the residential estates will be arranged by prior arrangement after the ballot.

Applications for these surplus HOS flats will be open in mid-August, and the selection process is scheduled to begin in early October.