New flat-sale laws due this year

January 18, 2012

The Transport & Housing Bureau will table a draft bill listing measures to enhance the transparency of the sales arrangements and transaction information of first-hand residential properties at the Legislative Council in the first quarter of 2012, for implementation later in the year.
 
Secretary for Transport & Housing Eva Cheng told legislators today the Government is committed to safeguarding consumers' rights, and ensuring they have access to accurate and comprehensive property information when purchasing first-hand private residential properties.
 
Ms Cheng said, following a media report on exceptionally high prices of flats at 39 Conduit Road, that as at January 6 four out of the 24 units of the first batch sold at the building had completed transactions. The transactions of the remaining 20 units were cancelled.
 
The developer told the Lands Department it retained 5% of the transacted price of each of the 20 cancelled transactions. Apart from the 24 units of the first batch, there were three other units at 39 Conduit Road which had completed transactions, and another three which had cancelled transactions.
 
Police are investigating the case.
 
Ms Cheng said to enhance the transparency and fairness of the sales arrangements of first-hand residential properties, the bureau issued a public consultation in November seeking views on draft legislation. The consultation exercise will end on January 28.
 
The proposed legislation states the penalties for breaches of the requirements, including misrepresentation and dissemination of false or misleading information. Depending on the nature of the offences, the maximum penalty is seven years in jail and a $5 million fine.