More than 80,000 Home Ownership Scheme flats over five years old are to be released to the open market.
The move follows a decision by the Housing Authority to cut by half the restriction which prevents owners selling their homes for at least 10 years.
Officials insisted the change would not create competition with developers.
'Instead, sellers hunting for another flat in the market will stimulate property activities in a chain reaction,' said Walter Chan Kar-lok, chairman of the authority's Home Ownership Committee.
Owners can sell their flats on the open market after the five-year restriction period, subject to payment of a premium in proportion to the original discount.
But the date for implementation must wait until Legco amends the Housing Ordinance later this year.
