ENG-2008 — Page 263

Housing 1 207

Supporting Infrastructure

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The infrastructure for supporting housing development is provided in programmed and structured manner. To avoid delays in housing development caused by a lack of infrastructural facilities, the Government has adopted a fast-track approach to address possible problems. At present, there are 11 such projects in different stages of implementation. Their estimated combined cost of about $5.2 billion has been approved.

Private Sector Housing

Private Residential Property Market

After a surge in transactions and prices of first-hand and second-hand residential properties during the first half year of 2008, the property market started to slide in the third quarter as a result of the global financial crisis. As at December 2008, there had been about 95 900 registered transactions, 22 per cent down. on 2007. As at the end of 2008, the residential price index and rental index were 12 per cent and 11 per cent lower than that of 2007 respectively.

Estate Agents

The vast majority of residential property transactions in Hong Kong are conducted through estate agents. Since January 1, 1999, all individuals or companies engaging in estate agency work are required to obtain licences issued by the Estate Agents Authority (EAA). As at the end of 2008, there were about 23 270 individual licence holders and 1 660 company licence holders. The principal functions of the EAA, which was set up in 1997, are to issue licences, promulgate best practice, conduct inspections, investigate complaints, impose penalties on licensees who break the rules, provide training and promote consumer education. The aim is to raise the standard of service provided by estate agents, enhance consumer protection, and encourage open, fair and honest property transactions. The practice and conduct of estate agents are governed by the Estate Agents Ordinance and its subsidiary regulations.

Sale of Uncompleted Residential Properties

Developers of private residential units may apply to the Director of Lands for consent to put up units for sale before completion. In approving pre-sale applications from developers, the Lands Department will require the concerned developer to provide specified property information. The Real Estate Developers Association of Hong Kong (REDA) has a self-regulatory regime. It also issues guidelines to help its members provide proper information in their sale brochures. The guidelines are updated from time to time.

The definition of 'saleable area' was standardised by the Lands Department under its Consent Scheme on October 10, 2008. Uncompleted first-hand residential properties approved for pre-sale under the scheme must adopt the definition in their sales brochures. The standardised definition of 'saleable area' means the area occupied by the unit, the balcony and the utility platform. Other areas, such as bay windows, should be listed separately item by item and should not be recorded as