************************************************************
Following is a question by the Hon Ma Lik and a written reply by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today (January 17):
Question:
The Hong Kong Housing Authority ("HA") is putting up surplus Home Ownership Scheme ("HOS") flats for sale in phases, and the 2007 Phase 1 flats are available for application by public rental housing tenants and other eligible persons between January 2 and 15 this year. In this connection, will the Government inform this Council whether it knows:
(a) the details of various expenses incurred by HA in marketing the HOS flats under the said phase, including the costs of advertising and refurbishing the show flats;
(b) how the expenses in item (a) compare to the corresponding expenses incurred in the previous sales of HOS flats; and
(c) the principles and objectives on the basis of which HA determined the above marketing expenses?
Reply:
Madam President,
My reply to the three-part question is as follows:
(a) The marketing expenditure for the "Sales of Surplus HOS Flats (2007 Phase 1)" is around $6.8 million, made up of the cost of advertising at around $2.8 million, the cost of refurbishing three show flats (with furniture and household electrical appliances) at around $800,000, the cost of various printed materials including sales brochures at around $1.5 million, the cost of producing videos and exhibits for the HOS Courts at around $1 million, and the cost of customer services and miscellaneous expenses at around $700,000.
(b) The current HOS sale exercise incurs less marketing expenses than the previous exercises. For example, the marketing expenditure for HOS Phase 24A, which was launched before the cessation of HOS sale in 2002, was about $8.7 million.
Unlike the previous exercises, there is no television advertisement this time and nearly $3 million has been saved as a result. Moreover, for the furnished show flats in the current sales exercise, the refurbishing cost, with discount for depreciation, will be recovered from the buyers as part of the flat price. Regarding the show flat in Kingsford Terrace, it will be retained for use in 2007 Phase 2.
(c) Given the small number of surplus HOS flats put on sale in the current exercise, it is not necessary to launch large-scale publicity. When devising the marketing strategy and budget, the main consideration of the Housing Authority is to provide adequate sales information for public housing residents and other prospective buyers.
Ends/Wednesday, January 17, 2007
Issued at HKT 11:35
NNNN
