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Housing

Private Sector Housing

Private Residential Property Market

To ensure the healthy and stable development of the property market, the Government monitors closely the private residential property market's development and remains alert to the risks of a property bubble. To this end, various measures have been implemented by the Government, such as increasing land supply, combating speculative activities, increasing the transparency of property transactions, and preventing excessive expansion in mortgage lending.

In October 2012, the Government enhanced the existing Special Stamp Duty and introduced the Buyer's Stamp Duty. The objective of these demand-management measures is to help prevent further exuberance in the housing market which may pose significant risks to macro economic and financial sector stability; to ensure the healthy and stable development of the private residential property market which is crucial to the sustainable development of Hong Kong as a whole; and to accord priority to Hong Kong permanent resident (HKPR) buyers over non-HKPR buyers in the current market situation.

Sale of First-hand Residential Properties

Developers of private residential property 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 applicants to provide, among other things, specified property information in their sales brochures and price lists. The Real Estate Developers Association of Hong Kong issues guidelines for its members to follow when making these applications.

To strengthen the regulation of the sale of first-hand residential properties, the Residential Properties (First-hand Sales) Ordinance was enacted in June 2012 and will be implemented in April 2013. The Transport and Housing Bureau will set up the Sales of First-hand Residential Properties Authority to enforce the ordinance.

Estate Agents

The practice and conduct of estate agents, who conduct the vast majority of residential property transactions in Hong Kong, are governed by the Estate Agents Ordinance and its subsidiary legislation. Individuals or companies engaging in estate agency work must obtain a licence from the Estate Agents Authority (EAA). At 31 December 2012, there were about 36,400 individual licence holders and about 2,900 corporate licence holders. The EAA's main functions include the issuing of licences, promulgating best practices, conducting inspections, investigating complaints, imposing penalties on licensees who break the rules, providing training and promoting consumer education.

Websites

Transport and Housing Bureau: www.thb.gov.hk

Hong Kong Housing Authority/Housing Department: www.housingauthority.gov.hk Hong Kong Housing Society: www.hkhs.com

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