Chief Executive Carrie Lam has announced new measures for the pricing policy of subsidised sale flats.

At a press conference today, Mrs Lam said the affordability test of the existing pricing mechanism of Home Ownership Scheme flats will be revised by ensuring at least 75% of flats, instead of the current 50%, are affordable.

The median monthly income of households which do not own flats, at $39,500 excluding MPF contributions, will be used for the affordability test and replace the current monthly income limit of White Form family applicants at $57,000.

Mrs Lam said the move will bring the price of HOS flats down to about 52% of market value from the current 70%.

Assuming there is a 400 sq ft flat in Kai Tak Kai Long Court for example, it will cost $2.9 million, or $7,280 per sq ft under the new measure from the current $3.9 million, or $9,800 per sq ft.

Mrs Lam also said Green Form Subsidised Home Ownership Scheme flats will be discounted 10% more than the previous HOS sale exercise to make them more attractive and affordable to public housing tenants.

The new pricing policy for the Green Form Subsidised Home Ownership Scheme will come into effect this year.

The Government will also invite the Housing Authority to study the implementation of the new pricing policy for HOS flats to be sold this year.