HOS discount larger than expected

Local | Erin Chan 16 Sep 2020

The latest 7,047 Home Ownership Scheme flats will be sold at a 40 percent discount from market value, with prices ranging from HK$1.17 million to HK$4.89 million, the Housing Authority said.

Applications opened last week for the four developments - Choi Wo Court in Sha Tin, Shan Lai Court in Fan Ling, Kam Chun Court in Ma On Shan and Kai Cheung Court in Diamond Hill - and will last until 7pm on October 7.

At least 18 HOS flats affected by the cancellation of sales in the last two rounds will also be featured.

The new pricing arrangements have been adjusted from the original discount set at 37 percent, which saw prices ranging from HK$1.23 million to HK$5.13 million.

An authority spokesman said the arrangement takes into account a 5 percent drop in the median monthly income of non-owner occupied households in April to June.

"Compared to provisional selling prices, the finalized average selling prices represent a downward adjustment of about 5 percent," he said.

The spokesman said the arrangement was also made to align with the pricing mechanism. Under the mechanism, the discount applied should be based on the benchmark that at least 75 percent of the flats are affordable to non-owner occupied households with a median income.

"This is assuming that they need to spend no more than 40 percent of their monthly incomes on mortgage payments," the spokesman said. "The discount rate is applicable to both new flats and unsold or rescinded flats."

He also reminded the public that the White Form Secondary Market Scheme 2020 is also open for application during the same period.

Applicants are encouraged to submit online applications for both schemes in light of the pandemic.

But forms are also accepted via post or drop-in boxes at the Lok Fu HOS customer service center, or rental estate offices and home affairs inquiry centers across the city.

Balloting exercises are expected to begin in January and eligible applicants can expect to select flats starting from June.

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