Residential Property Prices

Properties were more affordable as average prices up to December 2002 were about 62.9 per cent lower than those at the market peak in October 1997. Property speculation was minimal. The average ratio of resale before assignment was 2 per cent in 2002, compared with 10.1 per cent at the peak in March 1997.

Tenancy Control

To simplify the statutory tenancy renewal and repossession procedures in the private domestic rental market, the Government introduced the Landlord and Tenant (Consolidation) (Amendment) Bill 2001 into the Legislative Council, and this was passed in December. The amendment bill streamlined statutory procedures governing tenancy renewal and repossession, revised compensation package for sub-let and part-let premises in redevelopment cases, and increased the penalty for harassment of tenants and unlawful eviction.

    With a view to giving owners the flexibility and autonomy they deserve, mitigating the difficulties in recovering flats for re-letting and resuming the free operation of the private rental market, a further review would be conducted on the Landlord and Tenant (Consolidation) Ordinance. The objective is to relax all excessive protection of security of tenure and reduce intervention in private tenancies. The Government aims to introduce the Landlord and Tenant (Consolidation) (Amendment) Bill into the Legislative Council in June 2003.

Estate Agents

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 practice.

    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 infozmation of uncompleted residential properties to potential purchasers, a committee set up by the Government in August 2001 continued 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. Opinions on and complaints about sales descriptions of uncompleted residential properties have been collected through the website and the bilingual telephone hotlines of the Housing, Planning and Lands Bureau.

Home Pages

Housing, Planning and Lands Bureau: http://www.hplb.gov.hk

Housing Authority and Housing Department: http://www.housingauthority.gov.hk