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LBAC discusses consent scheme
The Land and Building Advisory Committee (LBAC) today (Monday) discussed the Land Authority Consent Scheme.
Chaired by Mr Cheng Hon-kwan, the Committee was briefed that the new Consent Scheme was one of the measures recommended by the Task Force on Land Supply and Property Prices in June 1994 to dampen speculation in the residential property market.
Members were briefed that since June 1994, a total of 17 presale consents for residential developments subject to the new measures, involving 6,906 units, have been issued.
These measures included that consent to forward sales should not be given more than nine months before the completion date estimated by the authorised person and specified in the sales and purchase agreement.
For private sales, the quota should be reduced to 10% and private purchasers were required to pay a 10% deposit before the date of the public sale and to sign the formal sale and purchase agreement within 7 days.
Members were informed by the Secretary for Planning, Environment and Lands and the Secretary for Housing that the Administration would continue to monitor the property market situation closely but for the time being, the Administration did not intend to impose additional measures to dampen speculation.
The Committee was also briefed on the Report on the Property Market for the period 1 July to 31 December 1994 prepared by the Lands Department.
In contrast with the early part of 1994 when the market was characterised by strong buying interest and escalation of property prices, activity in the residential sector in the beginning of the second half of 1994 began to drop.
It was noted that measures to dampen property speculation appeared to be having an effect on the residential market with more developers cutting prices and offering incentives to attract home buyers.