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"This will promote greater certainty of flat supply, and is in line with the spirit of giving pre-sale consent to property developers," Mr Wong said.

Third, developers will be required to put a reasonable quantity of flats onto the market for each batch of pre-sale, e.g. not less than 20% of flats for each batch.

"The marketing strategy adopted by some property developers to release flats in very small batches tends to create an impression of artificial shortage, reduces choices, increases competition and thus make buyers less able to take informed decisions. The adjustment will ensure that a reasonable number of flats will be put onto the market each time, thus avoiding distorted market information and benefiting home buyers," Mr Wong said.

"The three adjustments announced today represent further steps taken by the Government to boost flat supply," Mr Wong said.

"Similarly, to increase the supply of pre-sale flats in the public sector, we have decided to extend the pre-sale period of subsidised home ownership flats (Home Ownership Scheme/Private Sector Participation Scheme) from the existing limit of 12 - 18 months to 24 months. The extension will enable 13,000 subsidised home ownership flats to be put onto the market earlier, in addition to private flats, thus boosting the overall supply situation," he said.

As regards subsidised home ownership flats, Mr Wong reminded owners, "The sale or lease of such a flat, other than to the Housing Authority, before the elapse of the restriction period of ten years from the date of assignment and the balance of premium has been paid, is a grave offence. The owner will be liable to prosecution, and to a maximum fine of $500,000 and to imprisonment of up to one year."

In order to reduce opportunities for speculation by confirmors in subsidised home ownership flats, for which the ten-year resale restriction period has expired, Mr Wong said, "We will ask the Housing Authority to speed up the process of premium assessment and to shorten the period for premium repayment."

Mr Wong said: "The ultimate solution to tackle speculation and to soften price escalation lies in the production of more land for housing development. We are determined to do everything we can to meet our announced housing targets of facilitating the production of 195,000 private flats in the six-year planning period from 1995/96 to 2000-01.