ENG-2013 — Page 229

11

Housing

Supporting Infrastructure

The infrastructure to support housing development is provided in a 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. As at December 2012, there were nine such projects in different stages of implementation, with an estimated combined cost of about $5.5 billion.

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, managing demand for residential properties, increasing the transparency of property transactions, and preventing excessive expansion in mortgage lending.

In February 2013, the government introduced a new round of demand-side management measures, including an increase in the ad valorem stamp duty, in addition to the introduction of the Buyer's Stamp Duty and the enhancement of the existing Special Stamp Duty in October 2012. These measures aim to prevent further over-heating. In the private housing market which may pose significant risks to macro economic and financial sector stability; to ensure the healthy and stable development of the property market which is crucial to the sustainable development of Hong Kong as a whole; and to accord priority to the home ownership needs of Hong Kong permanent residents in the midst of the tight supply 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 Residential Properties (First-hand Sales) Ordinance came into full effect on 29 April 2013. It aims to enhance the transparency and fairness of the sales of first-hand residential properties, strengthen consumer protection, and provide a level playing field for vendors of first-hand residential properties. The Sales of First-hand Residential Properties Authority has been. established to ensure the efficient implementation of 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). As at 31 December 2013, there were about 36,000 individual licence holders and about 3,000 corporate licence holders. The EAA's main functions include the issuing of licences, promulgating best practices, conducting inspections,

185