“Our aim is to help middle-income families to buy houses for their own use,” said Cheng, adding that strict resale arrangements would be put in place to prevent people from speculating on the homes.

The flats, with pre-installed basic electrical appliances and sanitary ware products of mainstream brands, ranged in size from 332 square feet to 568 square feet, and were priced at between HK$9,734 and HK$12,414 per square foot in saleable area.

A 530-sq. foot used flat in the 5-year old project “The Latitude” in San Po Kong, next to the Kai Tak development, is currently asking for about HK$8 million, or HK$15,000 per square foot, according to latest market data from real estate agents.

Cheng said the agency had encountered some difficulties in developing the project.

“We have to strike a balance between legal risks and market needs,” Cheng said, referring to the formulation of eligibility criteria.

Asked whether the authority had any plans to launch a similar new subsidised flat scheme, he said: “It’s up to our board and the government.”

The authority revised the eligibility criteria for its first subsidised housing project as it still planned to allow single people to buy homes but with its income eligibility requirements almost halved from HK$60,000 to HK$33,500.

The organisation made the move after a public outcry erupted over its decision to allow single people to buy subsidised flats and to use the same income limit as family applicants. The HK$60,000 monthly limit was considered too generous for single people.

The De Novo project at the former Kai Tak airport site had initially been earmarked for homeowners displaced by the authority's redevelopment projects.

The scheme provided 484 flats, of which 338 were selected for sale as subsidised flats and 146 units were sold under the flat-for-flat programme.

The authority put the subsidised flats on the market in response to the policy initiative of Chief Executive Leung Chun-ying to increase the supply of more affordable subsidised homes as announced in his 2015 policy address.

Interested parties may obtain the application forms for the scheme from the authority’s offices in Tai Kok Tsui and Sheung Wan. They are also available on the Kai Tak development’s website. Application will be closed on January 21.

Cheng said the development was near completion.

“After the closing of the application period, balloting in around March and the screening of applicants, the selection and sale of the units will take place in around the middle of the year,” he said. “It is anticipated that the successful applicants can move in during the third quarter of 2016.”