ENG-1997 — Page 243

HOUSING

Class Housing Scheme, Flat-for-Sale Scheme and Urban Improvement Scheme. Its annual production for the past five years averaged some 3 100 units.

Housing Supply

In 1997, the Steering Committee on Land Supply for Housing (HOUSCOM), led by the Financial Secretary, completed a review of the organisation of and work procedures involved in housing production, and continues to work towards facilitating the production target of at least 85 000 flats every year.

On July 15, 1997, the government announced a five-year Land Sales Programme. From now on, it will announce a similar programme each year on a rolling basis to enhance transparency and to provide a clearer picture of land supply for housing.

The programme covers two parts land disposal between July 1997 and end- March 1999 and the projected land supply for 1999/2000 to 2001/02. The first part includes 120 hectares and the second part includes 260 hectares for private sector housing development.

Private Sector Housing

The total private housing stock amounts to about 940 000 units.

Property Prices

In early 1997, the property market began to revive, with property prices rising steadily to the 1994 level, primarily due to growing desire among the general public to buy flats to live in and for investment. In response to a spate of speculative activities in the property market, especially at the upper end of the market and particularly through the use of shell companies, prompt measures were taken in January to restrict the proportion of company purchasers and prohibit the change of directorship before assignment. Further measures were taken in March to increase the flat supply by extending the pre-sale period of private and subsidised flats. These measures have been effective: speculation through shell companies has disappeared; sale of flats were conducted in an orderly manner and the property market has become more stable. In December 1997, prices in money terms were 17.1 per cent higher than at the peak in 1994.

Regulation of Estate Agents

In May 1997, the Estate Agents Ordinance was passed to regulate the operation of estate agents in Hong Kong. The Estate Agents Ordinance makes provisions to establish a statutory Estate Agents Authority responsible for licensing estate agents and regulating their activities, to enshrine the obligations or estate agents in law and to prescribe penalties for offences. The Estate Agents Authority was established in November 1997. A two-year transitional period will be provided to enable the trade to meet the full licensing requirements by 2000/01.

Sales Descriptions of Uncompleted Flats

After public consultation in 1994, the Law Reform Commission reported in April 1995, recommending the introduction of legislation to require developers to provide sales literature with clear and accurate descriptions about uncompleted properties put on sale, and to impose penalties for non-compliance. The government completed

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