FIFTH
WEDNESDAY, MAY 22, 1991
2
GOVERNMENT DID HOWEVER INTERVENE RECENTLY WHEN IT WAS SHOWN THAT SALE PRACTICES WERE GIVING RISE TO DISTURBANCES AND TYING UP LARGE NUMBERS OF POLICEMEN IN CROWD CONTROL. IT REACHED AGREEMENT WITH THE REAL ESTATE DEVELOPERS ASSOCIATION ON SALES PROCEDURES WHICH WOULD BE MORE CONDUCIVE TO ORDERLY BEHAVIOUR. SOME OF THE MEASURES AGREED WERE SPECIFICALLY AIMED AT REDUCING THE ACTIVITIES OF EXCESSIVE SPECULATORS, SUCH AS THE INCREASE IN THE INITIAL DEPOSIT PAYABLE FOR THE POTENTIAL PURCHASE TO 50% OF THE AVERAGE PRICE OF THE UNITS, AND OF THE AMOUNT FORFEITED IN THE CASE OF NON-COMPLETION BY THE BUYER ΤΟ 1.5%.
SIR, MANY OF US WILL REMEMBER VERY DIFFERENT TIMES IN WHICH IT SEEMED THAT THERE WAS A VERY MUCH STRONGER CASE TO BRING IN STRICTER CONTROL ON SPECULATION THAN THERE IS NOW.
BUT SUCH MAY HAPPEN AGAIN WHEN THE PRESENT FLUSH OF NEW PROPERTIES IS SOLD AND I AGREE WITH MEMBERS AND ESPECIALLY IN VIEW OF THE VERY WIDE PUBLIC CONCERN ABOUT THIS MATTER AT THE PRESENT THAT IT WOULD BE WORTHWHILE ΤΟ COOLLY AND CALMLY REVIEW THE SUGGESTED SOLUTIONS AND TAKE A FRESH VIEW ON THEIR SUITABILITY AND PRACTICABILITY AND OVERALL BENEFIT. AS I MENTIONED ABOVE WE HAVE ALREADY
PERHAPS FOR THE WRONG REASONS IN SOME MEMBERS' VIEW INTRODUCED MEASURES WHICH ARE ANTI-SPECULATIVE .IN NATURE. MEMBERS BOTH TODAY AND ON PREVIOUS OCCASIONS WHEN THIS ISSUE HAS BEEN DISCUSSED, HAVE RAISED VERY REAL ISSUES AND HAVE ALSO SUGGESTED OTHER MEANS FOR CURBING EXCESSIVELY SPECULATIVE AND UNETHICAL PRACTICES, INCLUDING THE INTRODUCTION OF BALLOTING, LIMITATIONS OF THE NUMBER OF UNITS ALLOWED TO BE REGISTERED IN THE NAME OF BACH PERSON, AND RESTRICTING RESALES BETWEEN THE FINAL SALE AND PURCHASE AGREEMENT. ALL THESE IDEAS HAVE THEIR ADVANTAGES AND DISADVANTAGES FOR HOME BUYERS, DEVELOPERS, BANKS AND ABOVE ALL THE ECONOMY AND THEY DO NEED LOOKING ᎪᎢ . AS I SAID, VERY COOLLY AND CAREFULLY FROM EVERY ANGLE BEFORE CONSIDERING ADOPTION. THEY ALSO REQUIRE EXTENSIVE DISCUSSIONS WITH INTERESTED PARTIES INCLUDING AGAIN THE CONSUMER COUNCIL, BANKS DEVELOPERS AND OTHERS BEFORE ADOPTION. BUT I ACCEPT THAT THE ADMINISTRATION SHOULD REVIEW ALL THESE ISSUES AND NO DOUBT MEMBERS WILL WISH TO KEEP TRACK OF OUR PROGRESS.
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ONE FURTHER RELATED MATTER WHICH I KNOW ALSO CONCERNS THE PUBLIC AND WHICH HAS BEEN MENTIONED BY MR MARTIN LEE TODAY AND ONE OR TWO OTHER MEMBERS IS THE IRREGULAR PRACTICES OF SOME REAL ESTATE AGENTS. REAL ESTATE AGENTS IS, LIKE SPECULATION, A RATHER BROAD TERM. IT COVERS BOTH FLY-BY-NIGHT AND ALSO MAJOR INTERNATIONAL OPERATORS.
WITH THE BUOYANCY OF THE PROPERTY MARKET AND BETTER AWARENESS OF CONSUMER RIGHTS, THERE HAS BEEN AN INCREASING NUMBER OF COMPLAINTS AGAINST REAL ESTATE AGENTS RECEIVED BY THE INDEPENDENT COMMISSION AGAINST CORRUPTION AND THE CONSUMER COUNCIL. IN 1990, A TOTAL OF 181 SUCH COMPLAINTS WERE RECEIVED, COMPARED WITH 140 ONLY IN 1989. THE TOTAL NUMBER OF COMPLAINTS IS STILL RELATIVELY SMALL, GIVEN THE TOTAL NUMBER OF PROPERTY TRANSACTIONS EACH YEAR, WHICH AMOUNTS TO OVER 74,000 IN 1990/91. NONETHELESS, THE TOTAL AMOUNT OF MONEY INVOLVED IN THESE COMPLAINTS IS SUBSTANTIAL AND IT SEEMS PROBABLE THAT MANY MORE WOULD HAVE HAVE COMPLAINED, IF THEY HAVE NOT BEEN SO SUCCESSFULLY CHEATED. THE MALPRACTICES REPORTED INCLUDE MIS- REPRESENTATION, NON-DISCLOSURE OF KEY INFORMATION ABOUT THE PROPERTY, ILLEGAL ALTERATIONS, EXAGGERATION OF SIZE, STAMP DUTY FRAUD, AND DECEPTION.
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