ENG-1999 — Page 254

HOUSING

208

Private Sector Housing

Residential Property Prices

Property prices remained stable in 1999. Prices in December 1999 increased by about nine per cent compared with the trough in October 1998. Properties became more affordable as average prices were about 47 per cent lower than those during the market peak in October 1997. Property speculation subsided. More than 99 per cent of new mortgage loans approved in 1999 were for residential properties for owner- occupiers, showing that the market was largely end-user driven.

The Government held five land auctions and two tenders in 1999 after lifting the moratorium on land sales imposed in June 1998. A total of 16 residential sites were sold successfully to the private sector in a fair and open manner. Prices fetched were above market expectations.

Mixed Development

As a means to encourage further private sector involvement in the public housing programme, the Government has invited private developers to build subsidised home ownership flats as part of 'mixed developments'. Under this approach, residential sites are offered for sale by tender. The successful tenderer is required to hand over a specified proportion of flats within the development to the Government for sale to eligible purchasers at designated prices. Two sites were identified for a pilot scheme, for which the HKHS is the implementation agent. Tenders for the first site were invited in October.

Consumer Protection

Following consultation with the trade and the public, the Estate Agents Authority (EAA), established on November 1, 1997, devised licensing arrangements and practice directions for estate agents. The Estate Agents (Licensing) Regulation was passed by the Legislative Council in November 1998 and became operational on January 1. All estate agents are now required to obtain a licence to practise.

The Estate Agents Practice (General Duties and Hong Kong Residential Properties) Regulation and the Estate Agents (Determination of Commission Disputes) Regulation were passed by the Legislative Council in June, and took effect on November 1. The former stipulates rules relating to the conduct, duties and practice of licensed estate agents. The latter prescribes rules and procedures for the EAA to assist in the mediation of disputes between an agent and a client.

The Government also completed extensive consultation with property developers and professional bodies on the proposed introduction of legislation to require property developers to provide sales brochures with clear and accurate descriptions of uncompleted residential properties put on sale, and to impose penalties for non-compliance. A Bill on Sales Descriptions of Uncompleted Residential Properties was being finalised.

Rent Control

Statutory controls on rent and security of tenure have a long history in Hong Kong. The present legislation governing tenancy-related matters is the Landlord and Tenant (Consolidation) Ordinance. The rent control provisions in the ordinance expired on