Policy Address

Monitoring the Sale of Flats

32.   To enhance the transparency of the sale of first-hand private residential properties, the Government has implemented various measures over the past two years, covering such areas as price lists, sales brochures, sales arrangements, transactions and show flats.  We have declared that we will legislate to regulate the sale of first-hand private residential units, if the existing regulation through the Lands Department's Consent Scheme and the guidelines of the Real Estate Developers Association of Hong Kong (REDA) proves ineffective.

33.       As we cannot reach a consensus with the REDA on the regulation of the sale of first-hand completed flats, the THB will set up a steering committee to discuss specific issues on regulating the sale of first-hand flats by legislation and put forward practicable recommendations within one year, including the use of saleable floor area as the only basis for listing the price per square foot to avoid misleading buyers and eradicate the problem of “shrunken flats”.

Review of the Capital Investment Entrant Scheme

34.       The Government has reviewed the Capital Investment Entrant Scheme, and noted an upward trend in real estate investment, which accounted for 42% of the total investment under the scheme for the first nine months of this year.  Despite the fact that real estate investments under the scheme in recent years have only represented about 1% of the total market turnover, the Government, in view of public concern, has decided to temporarily remove real estate from the investment asset classes under the scheme with effect from 14 October.  The Security Bureau will announce the implementation details and other changes to the scheme later.

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