The Application List System will be resumed from next year.

Speaking in the Legislative Council today, Secretary for Housing, Planning & Lands Michael Suen said details will be announced in January.

The Application List will be drawn up carefully in consideration of the quality, location and number of flats that can be built on these sites, having regard to the market situation and development needs.

To further stabilise the property market, he said the Government has put forward a number of measures:

* agreements have been reached between the Government and the two railway companies to ensure the dates of construction and completion of property developments will not significantly impact the market;

* all unsold and returned Home Ownership Scheme flats will not be offered for sale as subsidised housing before the end of 2006;

* the Housing Authority is actively exploring various disposal options for flats completed or still under construction but have never been offered for sale;

* developers will be given some flexibility over the period of the building covenants of development projects, which expire between November 1 and October 31 next year. They will be extended for one year without additional charges; and,

* the Government will work hard to secure early passage of the amended Landlord & Tenant (Consolidation) Ordinance, with the objective of relaxing all excessive protection of security of tenure and revitalising the rental market to attract more property investors.

Mr Suen said in the second quarter of this year, property prices fell 5% to 10% due to the SARS outbreak.

The property market has since been more active with transactions in both primary and secondary markets rising substantially.

However, Mr Suen said he anticipates that the number of works launched during the year will hit a record low, resulting in a fall in supply of new flats over the next few years.

According to the number of Notifications of Commencement of Foundation Works filed with the Buildings Department, the number of new construction works has fallen substantially from 35,000 flats in 1998, to only 11,000 flats in the first nine months of 2003.

In view of the falling supply in the next few years, Mr Suen said he is optimistic the imbalance between supply and demand will be rectified gradually.

He said a clear, comprehensive and consistent housing strategy is instrumental in restoring the confidence of the public and investors in the property market.