(e)
(1)
22
-
the number of transactions involving the resale of HOS flats by confirmors in each of the years since HOS flats have become available for free resale; and
the measures adopted by the Government to curb speculative activities in the secondary market of HOS flats, so that prospective home buyers may purchase such flats at reasonable prices?
Answer:
Mr President,
As at January 1997, there were about 57,900 Home Ownership Scheme (HOS) and Private Sector Participation Scheme (PSPS) flats, for which the ten-year resale restriction had expired and which could be resold freely in the open market, subject to the payment of premium proportionate to the original price discount at the time of purchase from the Housing Authority. Of these, about 8,200 units or 14% had actually been sold in the open market.
In 1996, there were 535 cases of resale of these flats within two years of sale by the original owner, accounting for 12% of all transactions (4,342) in the open market involving HOS or PSPS flats.
In December 1996, prices of HOS and PSPS flats in the open market increased by an average of 21% over January 1996 prices, depending on location.
As regards Part (e) of the Question, "confirmor" is a term commonly used to refer to people who buy a property and then resell it before completing the assignment of the property. We do not have such statistics before 1992. Information for recent years is as follows -
Number of transactions
1992
1993
1994
1995
1996
1
4
12
16 108
As regards Part (f) of the Question, prices of HOS and PSPS flats in the open market are influenced by the same factors as prices of flats in the private residential property market, namely, supply and demand, and general market sentiments. Buying and selling is an economic activity reflecting changing accommodation needs and investment decisions. We will monitor the situation closely, and consider taking appropriate action if necessary.
End