The Housing Authority has endorsed the sale of 16,641 surplus Home Ownership Scheme flats from next year, in two phases a year with about 2,000 to 3,000 flats for sale in each phase.

These flats comprise 5,509 returned flats in HOS/Private Sector Participation Scheme developments, 6,082 unsold flats in partially sold HOS courts, 3,040 flats in three unsold HOS developments and 2,010 flats in Kingsford Terrace. Click here to read details of the sales programme for major HOS courts.

The surplus flats will be offered for sale to both public rental housing tenants and eligible households living in private housing with a split ratio of 4:1. A more flexible split will be allowed during the sale exercise, depending on the take-up situation.

In setting the price for the sale, the authority's Subsidised Housing Committee Chairman Ng Shui-lai said the target group's affordability remains the primary consideration. It will follow the general guideline of offering a 30% discount on market value.

Buyback offers not available

Unlike previous arrangements, the authority will decline all buyback offers and will not provide a mortgage subsidy to purchasers. However, it will continue to provide mortgage guarantees for loans granted by banks and other authorised financial institutions for the purchase of HOS flats.

"By declining all buyback offers, there is no need for the authority to dispose of returned flats again, hence putting an end to the legacy issue after completing the sale of these flats," Mr Ng said. This will also end the need for the authority to shoulder the financial burden in buying back and holding the flats.

Promoting home ownership was no longer the authority's objective, Mr Ng said, so it was more appropriate to direct resources to the provision of affordable rental housing to families in need instead of offering mortgage subsidies to encourage certain groups of people to buy HOS flats.

Although ongoing condition surveys suggest most of the flats are in reasonably good and acceptable condition, the authority will carry out a defect rectification and maintenance programme at the flats to bring them to a reasonable standard before sale.

Structural safety guaranteed

Similar to previous practice, a one-year defects liability period from the date of assignment of individual flats will be offered for unsold flats, excluding returned flats. It will maintain a 10-year structural safety guarantee from the date of building completion, and a 20-year one for Tin Shui Wai projects.

"To demonstrate our confidence in the structural safety of our buildings and offer more psychological comfort to purchasers, the structural safety guarantee for the 28 unsold blocks will be counted from the commencement date of flat selection period of the first sale phase for each unsold block," Mr Ng said.

The endorsed sale programme and arrangements are in line with the guiding principles of launching all the surplus flats for sale as soon as possible from next year and resolving the legacy issue once and for all, safeguarding the authority's interests, and minimising the impact on the private residential property market as far as practicable.

The policy of indefinitely ceasing production and sale of HOS flats remains unchanged.