XN000022-1994-06-08 — Page 2

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WEDNESDAY, JUNE 8, 1994

PROPERTY PRICE AND HOUSING SUPPLY MEASURES ANNOUNCED

THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, BASON, TODAY (WEDNESDAY) ANNOUNCED A PACKAGE OF MEASURES TO PROPERTY SPECULATION, TO INCREASE HOUSING AND LAND SUPPLY STRENGTHEN CONSUMER PROTECTION AND THE ADMINISTRATION OF ITS POLICY.

MR TONY DAMPEN AND TO HOUSING

THE MEASURES ARE LARGELY BASED ON THE RECOMMENDATIONS OF THE TASK FORCE ON LAND SUPPLY AND PROPERTY PRICES WHICH HAD CONSULTED WIDELY IN THE COMMUNITY AND THE INDUSTRY AND TAKEN INTO ACCOUNT THE

10 PER CENT 15 PER CENT FALL IN PRICES SINCE MARCH.

PACKAGE ΤΟ

MR EASON DESCRIBED THE MEASURES AS A BALANCED ADDRESS THE CONCERN OF THE COMMUNITY WITHOUT DAMAGING THE ECONOMY.

HE EMPHASISED THAT THE GOVERNMENT WOULD CONSIDER THE NEED FOR TOUGHER MEASURES INCLUDING PUNITIVE STAMP DUTY ON SHORT-TERM RESALE OF PROPERTY AND PENAL RATING ON VACANT PREMISES IF EXCESSIVE SPECULATION CONTINUED.

THE MEASURES ANNOUNCED TODAY ARE:

DAMPENING SPECULATION

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CUT THE QUOTA FOR PRIVATE SALES OF UNCOMPLETED FLATS FROM 50 PER CENT TO 10 PER CENT TO RELEASE UP TO 10,000 MORE PRIVATE DOMESTIC FLATS DIRECTLY TO HOME BUYERS EACH YEAR;

PROHIBIT RESALE OF UNCOMPLETED FLATS MAKING BUYERS HOLD ONTO PROPERTY LONGER RISK OF SPECULATION;

BEFORE ASSIGNMENT. WILL INCREASE THE

RESTRICT THE FORWARD SALES TO NOT MORE THAN NINK MONTHS BEFORE ASSIGNMENT TO REDUCE THE SCOPE FOR SPECULATION AND CIRCUMVENTION OF THE BAN ON RESALE;

INCREASE THE INITIAL DEPOSIT FROM 5 PER CENT TO 10 PER CENT TO INCREASE THE COST OF SPECULATION;

RAISE THE AMOUNT OF FORFEITURE FROM 3 PER CENT TO 5 PER CENT OF THE PURCHASE PRICE IF A BUYER FAILS TO COMPLETE THE DEAL OR ENTERS INTO A CANCELLATION AGREEMENT WITH THE DEVELOPER. THIS ALSO AIMS TO DISCOURAGE SPECULATION AND SUB-SELLING;

DISALLOW FORWARD SALE OF CAR PARKING SPACES UNLESS THEY ARE SOLD WITH RESIDENTIAL UNITS;

BRING REDEVELOPMENT PROJECTS UNDER CONTROL OF THE CONSENT SCHEME WHICH GOVERNS THE PRE-SALE OF UNCOMPLETED FLATS AND OF THE BUILDING COVENANTS WHICH SPECIFY THE COMPLETION DATES.

/HOUSING SUPPLY

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