HOUSING
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sites will be offered for sale by tender. The successful tenderer will be required to hand over a specified proportion of flats selected at random within the development to the government for sale to eligible purchasers at designated prices. Two pieces of suitable land have been identified for a pilot scheme, for which the HKHS will be the implementation agent.
Consumer Protection
In 1998, following consultation with the trade and the public, the new Estate Agents Authority (EAA) devised licensing requirements and practice directions for estate agents. The Estate Agents (Licensing) Regulation was made by the EAA and passed by the Legislative Council in November 1998 to tie in with the start of the licensing system on January 1, 1999.
The Law Reform Commission recommended in April 1995 the introduction of legislation to require developers to provide sales literature with clear and accurate descriptions of uncompleted residential properties put on sale, and to impose penalties for non-compliance. In 1998, the government completed extensive consultation with property developers and professional bodies. These bodies generally supported the spirit of the recommendations. The government has accepted that new legislation is needed and will introduce a bill in 1999.
Rent control
Statutory controls on rent and security of tenure have a long history in Hong Kong. The present governing legislation is the Landlord and Tenant (Consolidation) Ordinance.
Before the end of 1998, rent increases were controlled under the ordinance in the following types of domestic tenancies-
•
tenancies in pre-war domestic premises built before August 17, 1945; and
• most tenancies in post-war domestic premises built before June 19, 1981.
These rent control provisions expired on December 31, 1998. Formerly controlled tenancies will continue to enjoy security of tenure so long as the tenant is prepared to pay the prevailing market rent on renewal of the tenancy.
Public Rental Housing
The HA and HKHS together manage about 723 000 public rental housing flats. It is the government's policy to ensure that these flats are allocated only to families in genuine need. At the end of 1998, there were 131 000 applications on the General Waiting List, including 17 000 applications from single persons. The government has pledged to reduce the average waiting time for public rental flats from the current six and a half years to under five years by 2001, to four years by 2003 and to three years by 2005.
Rent Policy
Tenants' affordability is the key factor in considering the rent levels of public rental flats. It is a statutory requirement that rents for existing estates are reviewed every three years, and that the overall Median Rent-to-Income Ratio for all estates following rent adjustment should not exceed 10 per cent. Other factors taken into consideration include estate values, inflation, rates and maintenance and