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Following is a question by the Hon Lee Wing-tat and a written reply by the Secretary for Transport and Housing, Ms Eva Cheng, in the Legislative Council today (July 11):
Question:
I have received complaints from quite a number of prospective buyers and owners of private properties alleging that when property developers and estate agents promote the sale of properties, they often provide information on the sale situation and prices of flats only verbally. In this connection, will the Government inform this Council:
(a) of the number of relevant complaints received by the authorities concerned in the past three years;
(b) whether it will require representatives of property developers and estate agents to keep audio records of their discussions with prospective buyers, so as to facilitate follow-up action by the authorities concerned on the complaints received; and
(c) whether it will consider requiring property developers to erect an information board measuring at least five feet tall by five feet wide at a prominent location of their sale sites to display the latest information about the sale situation and prices of flats, and to update such information at hourly intervals?
Reply:
Madam President,
My reply to the three-part question is as follows:
(a) Over the past three years, we have received two complaints concerning the verbal release of false sales figures or prices of units by estate agents. The Estate Agents Authority (EAA) has, after investigating both cases, issued letters to the estate agents concerned, reminding them of the need to follow the practice circulars issued by EAA when dealing with sale of properties. There were three other complaint cases concerning the speculation about future prices of other units of the developments by the representatives of the developers. These cases, however, could not be followed up since the matters did not relate to the actual sales or prices.
(b) Estate agents and representatives of developers may discuss with a considerable number of prospective purchasers regarding transactions of individual units in their day-to-day operations. It is impractical to require audio records be kept of all the conversations with prospective buyers. To assist purchasers in knowing more about how to protect their own interests, the Consumer Council (CC) and EAA have jointly published the "Notes to purchasers of first-hand properties" (the note) which set out the things requiring purchasers' attention in buying first-hand residential properties. The note reminds consumers that they should ensure that any important matters explained or guaranteed by the developers' staff or other persons are written in the provisional and formal agreements for sale and purchase (ASP) to form part of the contract. If a purchaser has any doubt about the ASP, he should consult a lawyer for professional advice.
(c) The Administration has to strike a balance between protecting consumer interests and minimising intervention in the free market operation. We would not consider at this stage requiring developers to display sales information at sales offices in a prescribed format. However, to enhance transparency and accuracy of sales information, the Real Estate Developers Association of Hong Kong has implemented a number of improvement measures at the Government's request, e.g. including the prices of a minimum number of units in the first price list issued by the developer, providing and posting at sale offices the price lists of the subsequent batches of units on offer prior to the commencement of their sale, standardising the definition of "sales" to refer to the signing of a provisional ASP, and ensuring that sales figures disclosed are accurate. EAA has also issued new practice circulars stipulating that estate agents must provide accurate sales information to prospective buyers and should not publish price lists without the consent of the developers.
Ends/Wednesday, July 11, 2007
Issued at HKT 13:10
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