New World Development has claimed ownership rights on two newly completed housing projects built under the now-defunct Private Sector Participation Scheme (PSPS), while other developers are urging the government to sell the flats through tender or auction them in fair competition.
Some developers were also concerned that the conversion of the two PSPS projects would add to the excess supply of private flats and put further pressure on already strained prices.
New World sales and marketing senior manager Barbara Ho said yesterday that the Housing Authority had agreed that the company had ownership rights on the 4,480 flats, in Hunghom Peninsula and in another PSPS development in Ngai Chi Wan.
The units were built by New World subsidiary Hip Hing Construction as part of the PSPS scheme, which encouraged private participation in the government subsidised Home Ownership Scheme (HOS). The future of the two projects was thrown into doubt in November when the government scrapped subsidised housing sales.
Michael Suen Ming-yeung, the Secretary for Housing, Planning and Lands, reportedly said all HOS flats would not be released for sale except the two finished PSPS developments.
But he also said the government had to negotiate with New World and make clear whether it was interested in buying the flats by paying extra land premiums to convert the flats into private homes. He is optimistic the two parties could reach a compromise about the land premium.
Mrs Ho confirmed the company was interested in buying the flats from the government and said they were in initial talks about the land premium.