ENG-1995 — Page 230

HOUSING

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Private Sector Housing

The total private housing stock amounts to about 886 000 units.

Property Prices

In June 1994, after a period of rapid price increases between 1989 and 1993, the government introduced a package of measures designed to dampen speculation, to increase housing supply and land supply, and to strengthen consumer protection and the administration of housing policy.

The anti-speculation measures have achieved the desired effect. Prices for selected residential developments in the secondary market were 25 per cent lower in November than at the peak in April 1994 and 19 per cent higher than in January 1993. Prices of new flats in December were between 25 and 35 per cent lower than at the peak in April 1994, depending on location.

In December, the government announced technical adjustments to the condi- tions of consent for pre-sale of uncompleted flats which were designed to provide greater operational flexibility to property developers and home buyers in property transactions.

Housing Supply

To speed up flat and land supply, the government has set up a housing project action team under the Secretary for Housing to monitor, facilitate and expedite the process of housing developments which would each produce 500 or more flats. Currently, more than 50 projects with a potential production of about 120 000 flats are being fast-tracked and closely monitored to ensure that both the land and required infrastructure will be available on time for development.

The government has earmarked $8 billion (in December 1993 prices) to be spent over the next five years on housing-related infrastructure projects, such as water supply, sewerage and transport links, to speed up housing production. In 1995–96, 42 public works projects have been included for funding.

The government has commissioned studies on transport, environmental and planning issues to examine the housing development potential of sites in the urban area, and at former military establishments, Sham Tseng Reclamation, Ma On Shan and Tin Shui Wai Reserve Zone. Another study is in hand to assess further redevelopment potential and preliminary findings are expected to be available by March 1996.

Consumer Protection

Regulation of Estate Agents

In November, after public consultation in 1994, the government introduced legis- lation to regulate the operation of estate agents in Hong Kong. The Bill seeks to establish a statutory Estate Agents Authority responsible for licensing estate agents and regulating their activities, to enshrine the obligations of estate agents in law and to prescribe the use of written agency agreements.