Transparency of transactions of uncompleted first-hand residential properties enhanced
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     The Transport and Housing Bureau (THB) announced today (November 20) that agreement had been reached with the Real Estate Developers Association of Hong Kong (REDA) on new measures to further enhance the transparency of transactions of uncompleted first-hand residential properties and the clarity of property information.

     Under the new arrangement, developers will be required to make public transactions of uncompleted first-hand residential properties within five working days after the signing of Preliminary Agreements for Sale and Purchase (PASPs).  

     In addition, REDA also agreed to show the price per square foot/metre in "saleable area" of individual flats on the price lists, and provide floor numbering information in a more prominent manner in the sales brochures of uncompleted first-hand residential flats.

     The above new measures will come into effect by end of November 2009.

     "The Government is deeply concerned about some recent sales tactics in the first-hand uncompleted residential property market and confusing market information.  The new measures will further enhance the transparency of transactions of uncompleted first-hand residential properties and the clarity of property information," a THB spokesman said.

     "At present, developers are required under the Lands Department's Consent Scheme to register a duly signed Agreement for Sale and Purchase (ASP) of uncompleted first-hand residential properties in the Land Registry (LR) within one month from the signing of the PASP.  There is therefore normally a lead time of about one month before the record of the transactions will be available for public inspection.  As a new requirement under REDA's guidelines, developers will be required to provide in their websites and sales offices information on the ASPs within five working days after the signing of the PASPs, so that the public will know about the transactions concerned in a matter of days.  Developers will still have to register the ASPs in the LR within one month from the signing of the respective PASPs," the spokesman said.

     "At present, only the flat price but not the price per square foot/metre of a flat is shown on the price lists of uncompleted first-hand residential properties.  There has been call for greater transparency in the flat price per square foot/metre for uncompleted first-hand residential properties.  Under the new requirement of REDA's guidelines, developers will be required to show the flat price per square foot/metre in 'saleable area' of individual flats on the price lists," the spokesman said.

     The definition of "saleable area" was standardised under the Consent Scheme on October 10, 2008, to include only the area of the unit, the balcony and the utility platform, if any.  Also, developers have been adopting the standardised price list template promulgated by REDA in all uncompleted first-hand residential properties approved for pre-sale under the Consent Scheme since October 10, 2008.

     On floor numbering information, developers have been providing in their sales brochures cross-section diagrams of floors which show the total number of storeys of a building and the position of floors, as well as floor numbering information in the "Information for Reference" section in the back part of the sales brochures.  

     "To further enhance the transparency of floor numbering information in the sales brochures, REDA will require developers to set out the floor numbering information clearly in the section on 'Basic Information of the Development' at the front part of the sales brochure," the spokesman said.

Ends/Friday, November 20, 2009
Issued at HKT 16:55

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