ENG-2001 — Page 259

HOUSING

mechanism for resolving problems affecting housing projects at both central and district levels.

Private Sector Housing

Residential Property Prices

Residential property prices remained stable in 2001. Properties were more affordable as average prices were about 54 per cent lower than those at the market peak in October 1997. Property speculation was minimal. More than 99 per cent of new mortgage loans approved were for owner-occupiers, showing that the market was largely end-user driven.

The Government held four land auctions and invited one tender. Nine residential sites were sold successfully to the private sector in a fair and open manner. Prices fetched were slightly above market expectations in most cases.

Mixed Development

Mixed development is a means to encourage further private sector involvement in the public housing programme. Under this approach, residential sites are offered for sale by tender, and the successful tenderer is required to hand over a specified proportion of flats within the development to the Government for sale to eligible low income families at designated prices, and retains the remaining proportion of flats for sale in the open market. Construction work on two pilot projects is in progress.

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 approved by the Legislative Council in November 1998, and became operational on January 1, 1999. 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 approved by the Legislative Council in June 1999, and took effect on November 1, 1999. 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 Estate Agents (Registration of Determination and Appeal) Regulation, which came into operation on March 1, 2000, prescribes the procedural rules for registering a determination and lodging an appeal.

In order to ensure the provision of comprehensive and sufficient sales information of uncompleted residential properties to potential purchasers, the Government set up a committee in August 2001 to monitor information contained in sales brochures of uncompleted residential flats to enhance consumer protection. The committee comprises representatives from the Legislative Council, the Consumer Council, the Real Estate Developers Association, the HKHA, the HKHS, and the legal, surveying and building professions. Also in August, the Housing Bureau set up a web site and bilingual telephone hotlines to collect opinions on and complaints about sales descriptions of uncompleted residential properties.

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