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Adjustments to conditions for pre-sale of uncompleted flats
The Housing Branch has considered various proposals put forward by property developers and home buyers in the past few months in relation to the residential property market, and has decided to make three technical adjustments to the conditions of consent for pre-sale of uncompleted flats.
Announcing this today (Friday), the Secretary for Housing, Mr Dominic Wong, said: "The technical adjustments will provide operational flexibility to both property developers and home buyers in property transactions, without giving rise to a revival of speculation. These adjustments are meant to benefit both developers and home buyers, and should not be regarded as signals of relaxation of our anti-speculation stance. Indeed we remain determined to curb speculation in the property market, and to increase land supply and housing provision to cope with increasing housing demand in the future."
The three adjustments, which will become effective immediately, are:
First, the pre-sale period will be extended from the existing nine months to 12 months before the estimated date of completion of the development.
"This should help to improve developers' liquidity and to reduce related finance charges," Mr Wong said. "With improved finances, developers should be able to put up more flats for sale a little earlier and possibly at slightly lower prices. These in turn will provide more choices of flats and benefit home buyers."
Second, the preliminary deposit paid by home purchasers to developers will be approximately 10% of the average purchase price of all flats offered for sale at any one time, instead of at exactly 10% of the actual price of a particular flat. The purchaser will still be required to make up the full 20% of the purchase price of the flat actually selected within 14 days of the date of signing the Agreement for Sale and Purchase.
"This will mean that the home buyer does not have to bring along money orders of varying 10% values, as was the case previously, before he can choose from among several flats the specific flat he wishes to buy," Mr Wong said.
Third, after the first registration and ballot and after all registered applicants have had an opportunity to select flats, developers will be allowed to sell the remaining flats to the general public on a first-come-first-served basis.