Located right next to the Yau Tong MTR station, Yau Chui Court enjoys the convenience of a comprehensive transportation network. It comprises four residential blocks and the current sale of Yau Chui Court Stage I covers 370 HOS units in block E.

HONG KONG: Voicing cautious optimism, in the face of a 30 percent increase in average home prices this year, Housing Authority officials are set to put 1,392 surplus Home Ownership Scheme (HOS) flats up for sale. The flats hit the market today after a half year deferral due to slumping demand and the global economic recession.

"About the sales result, we are cautiously optimistic," said Wong Bay, assistant director (Housing Subsidy) of the Housing Authority, as he stood in the living room of the delicately decorated HOS show flat.

This flat is one of 370 surplus HOS flats in Yau Chui Court Stage I. On a high-level floor, the suite has plenty of sunshine that pours into the rooms. The distant view of east Hong Kong Island and the sparkling waters are all part of the view. The 847-sq-ft flat has three bedrooms that could easily contain a bed, a table and a wardrobe in each room. The flat, at the high end of the market, is the largest in the court, priced at around HK$2 million.

"The flat prices are set at 70 percent of the assessed market price. Ninety-nine percent of buyers don't have to spend more than 40 percent of their income to pay for the mortgage," said Wong Bay.

The most expensive flat to be sold under this phase is one in Yau Chui Court. The flat on the 36th floor is listed at a price of HK$2,295,500. "The flat has a broad mountain view," a staff member of the Housing Authority explained. The cheapest is a one-bedroom flat in Po Ming Court, Tseung Kwan O. The price of the 280-sq-ft flat is HK$460,400.

The 370 flats in Yau Chui Court have never been sold although they were completed in 2002. The remaining 1,022 flats are distributed in seven different courts located in Wong Tai Sin, Tseung Kwan O, Sha Tin, Tin Shui Wai and Fanling. Among the flats in this phase, 1,000 are returned by previous owners.

Wong Bay believes the flats variously priced and located can accommodate the needs of families.

The next phase of the sale will be around the middle of next year, said Wong. But as to whether the Housing Authority intends to sell the remaining 4,000 surplus HOS flats at one go, Wong gave no answer.

It is estimated that there will be around 82,300 households in the private sector falling within the HOS eligibility net, according to the Housing Authority.

Starting today, the Housing Authority will accept applications during a two-week period. A balloting procedure will be processed in November. "We estimate people could start flat selection in December," Wong said. The length of the procedure has been reduced to two months from three months last year.

Wong Leung-sing, associate director of a real estate agency, believes sales will be high because of the low price.

The unsold HOS flats were completed years ago between 1996 and 2002. Some of them aren't all that new in appearance. All the flats have been inspected and maintained. There's a one year warranty, Wong Bay said.

Yau Chui Court features the New Cruciform design. China Daily

(HK Edition 10/30/2009 page1)