The Government will launch the Starter Homes pilot project and will invite the Urban Renewal Authority to assign its non-joint venture redevelopment at Ma Tau Wai Road for it.

The programme will help higher-income families who are not eligible for the Home Ownership Scheme and cannot afford private housing in the face of rising property prices.

The Ma Tau Wai Road project can provide 450 units of up to 507 sq ft.

The pre-sale exercise can launch as soon as December and the project can be completed by the second quarter of next year.

The discount for Starter Home units should be up to 20% less than the preceding Home Ownership Scheme sale exercise.

Eligible applicants must have lived in Hong Kong for seven years or more without previously owning property in the city.

Their income must fall between the prevailing income limits for HOS White Form applicants and about 30% higher than such limits.

Their assets must also not exceed the limit of 30% above the prevailing HOS asset limits for White Form applicants.

Starter Home owners cannot sell or rent out their units in the first five years after purchase.

After that period, owners can sell or let their units in the open market after paying a premium to the Urban Renewal Authority.

Chief Executive Carrie Lam said this can test the waters in the market to see whether those in the high income group are willing to buy such flats.

The Government will further reallocate nine private housing sites in Kai Tak and Anderson Road Quarry, capable of providing 10,600 flats for public housing.

It will further consider if the developments should be arranged for sale or rental.

The Transport & Housing Bureau will also establish a special taskforce to provide co-ordinated support to assist and enable more non-government institutions in pursuing transitional housing.