Secretary for Housing, Planning & Lands Michael Suen says there is no special reason to adjust the policy of not selling surplus Home Ownership Scheme flats by the end-2006, as the property market is developing steadily.

He told the Legislative Council today that to maintain public confidence in the property market, housing policy should be clear and consistent so intending home-buyers can make informed decisions.

"The community's views on whether the sale of surplus HOS flats should be advanced are rather diverse. Some quarters are concerned that early sale may impact the stability of the market and create confusion," he said.

Holding costs

As at March, maintenance and management costs and Government rents incurred by the 16,523 surplus flats was $216.3 million. Another $179.5 million will be incurred from April to the end of 2006. Simple touch-up work will also incur $9.1 million.

Among the surplus flats, 5,392 are returned, 6,082 are unsold in sold or partially sold HOS courts, 2,010 are from Kingsford Terrace, and the remaining 3,040 are flats in unsold HOS developments.

Mr Suen said arrangements for the flats and a sale timetable will be formulated in the second half of 2006 in light of the market situation. As to whether unsold flats will depreciate in value, it depends on the selling price of flats in future.