Resale Restrictions on HOS and PSPS flats

Revised resale restrictions for HOS and PSPS flats came into effect in
June 1997. Since then, 737 transactions have been completed and 2 211
applications for sale and 1 265 applications for purchase have been
received. A flat owner can resell the flat:

• in the first three years from first assignment, to the HA at the
  original purchase price;
• after the first three years from first assignment, to the HA at
  prevailing HOS or PSPS prices;
• after 10 years from first assignment, in the open market, subject to
  the payment of a premium; or
• from the fourth year onwards from first assignment, to a current or
  prospective public rental tenant, at a negotiated price.

Allowing HOS and PSPS flat owners to sell the flats to a current or
prospective public rental tenant will create a limited form of secondary
market for HOS and PSPS flats. After resale, the new owner will be
required to surrender his existing public rental flat (if he is a public rental
tenant), or to forego the right to be allocated a public rental flat (if he is a
prospective public rental flat tenant). The seller will not be required to pay
a premium. The new owner will take over the premium liability from the
seller, but will not be required to pay a premium unless and until he
wishes to sell the flat in the open market 10 years or more after the first
assignment by the HA to the initial purchaser.

The revised resale restrictions for HOS and PSPS flats will enable a more
rational use of housing resources, help to increase the turnover of HOS
and PSPS flats to meet demand for subsidised home ownership and free
public rental flats for reallocation to people in genuine need.

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