The Government has no plan to resume the production or sale of home ownership flats, but will keep a close watch on the market situation and devise appropriate measures, Secretary for Housing, Planning & Lands Michael Suen says.

He told a radio audience today there are still small, inexpensive private residential flats on offer in different districts. Therefore, the Government will stick to its decision to cease production and sale of home ownership flats indefinitely. Surplus home ownership flats will be put up for sale in phases from next year. Click here for more details.

On public housing, Mr Suen pointed out the average waiting time is three years and there will be no problem in public housing supply in the coming five years. But in the long run, the Government has to consult district councils on the use of public housing land lots.

Noting some people prefer to increase the supply of private residential flats, Mr Suen said the Government has to strike a balance among the needs and aspirations of different stakeholders.

He also revealed a legislative proposal on a more flexible public housing rental adjustment mechanism will be tabled to lawmakers early next year after getting the Housing Authority's endorsement. The new mechanism is expected to be established in six months.

Turning to land sales, Mr Suen noted an applicant's minimum guaranteed bid of $1.1 billion has been accepted for a residential site at 1 Broadcast Drive, Kowloon Tong, and the site will be auctioned on November 28.

The Government will ensure sufficient land supply and property developers will apply for land sales under the Land Sale by Application System in view of market needs, he said. There may be more land sale applications to come and land lots will not be sold at unreasonably low prices. Recently, land lots have sold at a price 40% to 70% higher than the opening bid.

Mr Suen stressed the Land Sale by Application System has been running smoothly and refinements will be made when necessary. Developers' failed applications for a land usually result from offering unreasonably low minimum bids, he added.