ENG-1996 — Page 250

HOUSING

190

Private Sector Housing

The total private housing stock amounts to about 911 100 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-speculative measures and subsequent technical adjustments have achieved the desired effects. In October 1995, prices of selected residential developments in the secondary market were 26 per cent below the April 1994 peak level. Owing to lower interest rates and aggressive bank lending policies, buying interest subsequently revived. In December 1996, prices in money terms were close to the April 1994 peak level. After adjusting for inflation, however, prices were about 16 per cent lower than the peak level.

Housing Supply

To enable the government's housing production target of producing 511 000 new flats in the six-year period from April 1995 to April 2001, sufficient sites for housing development have been identified. In the case of public housing, the development of individual housing sites has already been incorporated into the Housing Authority's Public Housing Development Programme. It is envisaged that the production can be met. For private housing, the government has no direct control over the actual production. However, the production from new development sites already identified so far should be sufficient to meet the production targets of 195 000 flats. To ensure that housing production is not unduly held up by the delay in land formation or the lack of infrastructure support, the government has set aside a sum for the purpose of facilitating the implementation of housing-related infrastructure projects, such as water supply, sewerage, land formation and transport links. In 1996-97, 60 public works projects have been identified for funding at a total estimated cost of $13 billion.

Consumer Protection

Regulation of Estate Agents

In November 1995, after public consultation in 1994, the government introduced proposed legislation (Estate Agents Bill) 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 agency agreement forms. A Bills Committee was set up by the Legislative Council to examine the legislation, which is scheduled for enactment in 1997.

Sales Descriptions on Uncompleted Flats

After public consultation in 1994, the Law Reform Commission reported in April, recommending the introduction of legislation to require developers to provide sales literature with clear and accurate descriptions about uncompleted properties put on