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In response to the Consumer Council's (CC) Study on the Sale and Purchase of First-hand Private Residential Properties in Hong Kong which was released today (July 26), the Transport and Housing Bureau (THB) said that the nine new measures that the Government had introduced with effect from June 1, 2010, had significantly enhanced the transparency of information and the fairness of transactions of first-hand private residential properties.
"The objectives of the nine new measures are to further enhance the transparency of information and fairness of transactions for first-hand private residential properties. We note that CC has acknowledged the steps taken by the Government to implement the nine new measures, and considers that the measures have enhanced the transparency and clarity of property information on first-hand private residential properties," the THB spokesman said.
"Under the nine new measures, developers are required, among other things, to make public transaction information within five working days and disclose transactions which involve members of the Board and their immediate family members; make public the price lists at least three days prior to the commencement of sale of the respective units; include more flats in the first price list of each respective batch of sale; and make public the sales brochures at least seven days prior to the commencement of sales. The sales brochures, price lists and the register of five-day transactions have to be uploaded onto developers' websites at the same time that they are made available in hard copy in the sales offices. Developers are required to allow visitors to take measurements, take photos and make videos inside show flats without prior appointment and at least one of the show flats has to be unmodified.
"In the light of public concern about the recent failure of individual developers to make public information on cancelled transactions of private residential properties in a timely manner, the THB is liaising with the Real Estate Developers Association of Hong Kong to further require developers to also make public the estimated date of completion of an Assignment when making public transaction information within five working days, and to make public cancelled transactions soon after the cancellation has taken place.
"We are beginning to see some positive changes to the arrangements on flat sales as developers comply with the new requirements. We will continue to closely monitor the effectiveness of the measures. Should the new measures prove to be less effective than we expect, the Government will not rule out the introduction of legislative measures to regulate transactions in the first-hand property market to enhance protection for home buyers.
"The CC's report is both timely and useful. The suggestions it contains relating to the provision of timely, accurate and complete information to allow prospective purchasers to make informed decisions is consistent with Government's objectives," the spokesman said.
Ends/Monday, July 26, 2010
Issued at HKT 17:02
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