Applications commenced yesterday in response to the Hong Kong Housing Society's plans to sell sandwich-class flats in Tseung Kwan O for singles and families. The flats are priced 23 percent below market value.

The discounted prices are aimed to attract families with monthly household incomes of between HK$23,001 and HK$39,000 and assets below HK$1.2 million. Single people also are eligible for sandwich-class flats for the first time. Their salaries must be less than HK$19,500 a month and their assets must not exceed HK$600,000. The society will provide mortgages up to 90 percent of the purchase price.

Crystal Tam, Tseung Kwan O district sales director of Centaline Property, said that the price - at HK$3,000 per square foot - "was not that attractive".

"Flats at the Metro City, a well-equipped estate, are about HK$4,100 per square foot. The Pinnacle where the sandwich flats are to be sold is 12 years old and defects have been discovered in some units. The estate does not appeal to buyers as anticipated," she noted.

She doubted the sale of sandwich-class flats would benefit the post-80s generation since their salaries are too low to afford the prices at this stage. "Young people are not the target this time," Tam said.

Nonetheless, sandwich-class flats remain desirable to people currently living in public housing since their applications are prioritized for this sale. "Public housing residents who fail to apply for Home Ownership Scheme (HOS) flats will opt for sandwich-class flats. The sale will have an impact on the HOS market but not on private properties," Tam remarked.

The application period that began yesterday will continue to March 22.

Prices for the 464 flats at the Pinnacle - near Po Lam station, a housing estate completed in 1998 under the society's Sandwich Class Housing Scheme, range from HK$1.3 million to HK$2.8 million. The two or three-bedroom units range from 568 square feet to 827 square feet.

The sale is the first step the government has taken since Financial Secretary John Tsang Chun-wah vowed last month in his budget speech to boost transactions in the mass housing market. More sandwich-class flats are expected to come to the market in the near future.

Ms Wong, a prospective buyer, expressed disappointment after viewing the two-bedroom demo unit yesterday. "The design is not practical and rooms are too small. I will consider buying a second-hand HOS flat instead at this price," she commented.

Some potential buyers voiced concern about spending a large sum of money on maintenance to fix defects.

In response, the society spokesman said the unsold flats have been regularly maintained and comprehensive inspections and repairs were conducted to ensure their condition was satisfactory. A one-year defect liability period will be offered to buyers.

The Sandwich Class Housing Scheme was undertaken by the society to build apartments for middle-income families at concessionary prices during the 1990s. More than 12,000 units were built.

(HK Edition 03/04/2010 page1)