XN000022-1994-11-10 — Page 2

THURSDAY, NOVEMBER 10, 1994

FINAL REPORT ON LAND AUCTIONS PUBLISHED

* *

THE REVIEW PANEL ON LAND AUCTIONS TODAY

(THURSDAY) PUBLISHED

TO

THAT ARE

ITS FINAL REPORT WHICH RECOMMENDS THAT NO DRASTIC CHANGES BE MADE THE PRESENT LAND DISPOSAL SYSTEM AND AUCTION ARRANGEMENTS GENERALLY REGARDED AS EFFECTIVE AND SUCCESSFUL BOTH WITHIN AND OUTSIDE HONG KONG.

HOWEVER, THE PANEL PROPOSED THAT THE PRESENT SYSTEM SHOULD FINE TUNED WITH THE FOLLOWING RECOMMENDATIONS:

BE

THE THE "GUIDELINES ON CONDUCT OF AUCTIONS" RECOMMENDED BY

USED IN PANEL IN ITS INTERIM REPORT SHOULD CONTINUE TO BE THE LIGHT OF ITS SUCCESSFUL IMPLEMENTATION IN THE LAST THREE AUCTIONS.

SHOULD

BE CONDUCTED BY

EXPERIENCED

AUCTIONEERS,

AUCTIONS PARTICULARLY IN THE SALE OF PROMINENT OR SPECIAL LOTS.

NOT ADVERSELY

WHERE OVERALL PLANNING AND DEVELOPMENT ARE AFFECTED LARGE LOTS SHOULD BE BROKEN UP INTO SMALLER ONES. THE REACH OF SMALL THIS WOULD BRING MORE SITES WITHIN DEVELOPERS WHO

DETERRED FROM BIDDING OF DEVELOPING A BECAUSE OF THE HIGH COST AND COMPLEXITY LARGE SITE.

MIGHT OTHERWISE BE

*

THERE

SHOULD

BE

FLEXIBILITY

IN

AN FORMULATING

AUCTION AND SEASONAL

BE

TIMETABLE WITH DUE REGARD TO SPECIAL EVENTS FACTORS WHICH COULD AFFECT THE MARKET. SPECIAL ANNOUNCEMENTS ON LAND MATTERS WHICH COULD IMPACT ON LAND PRICES SHOULD AVOIDED IMMEDIATELY BEFORE AND AFTER AN AUCTION.

DURING A PARTICULAR SALE BY TENDER SHOULD BE CONSIDERED PERIOD OF TIME WHEN PUBLIC AUCTIONS MAY NOT BE DESIRABLE DUE TO MARKET SENSITIVITY.

OTHER FORMS OF LAND DISPOSAL SHOULD ALSO BE CONSIDERED WHERE BE THE NUMBER OF PARTICIPANTS IN AN AUCTION IS EXPECTED TO

OR SMALL OR WHERE CRITERIA OTHER THAN PRICE, SUCH AS DESIGN SPECIAL REQUIREMENTS, ARE IMPORTANT IN DEVELOPING THE LOT.

ELECTRONIC BIDDING SYSTEM

THE PANEL HAS ALSO CONSIDERED AN BEING EXAMINED IN SINGAPORE.

DEVICES THE SYSTEM, WHICH ALLOWS BIDS BE MADE FROM ELECTRONIC

COULD REDUCE THE POSSIBILITY OF ISSUED TO INTERESTED PARTIES,

OF COLLUSION SINCE BIDS WOULD ONLY BE SHOWN ON A SCREEN IN THE FRONT THE BIDDING HALL AND BIDDERS WOULD NOT KNOW AGAINST WHOM BIDDING.

THEY WERE

AND

HOWEVER, THE SYSTEM WOULD DAMPEN AN ACTIVE BIDDING

AN COMPETITIVENESS OF HENCE THE INTRODUCTION IN SINGAPORE

ATMOSPHERE,

AWAITS THE

AUCTION. RESOLUTION

MOREOVER,

ITS

OF

TECHNICAL

COMPLICATIONS.

/IN VIEW