Lawmakers expressed concern yesterday over a modified guideline issued by the Real Estate Developers Association (REDA) on private sale of uncompleted flats.
At a Legislative Council (LegCo) Housing Panel meeting, lawmakers said the new guidelines neither increase transparency nor protect the interests of the consumers.
The new set of rules, which came into effect on June 24, were issued after REDA reviewed its old regulations because of public concern over the transparency of private sales.
Since 2001, REDA has established a self-regulatory regime to be followed by its members.
The new guidelines include providing sales brochures and price lists to purchasers along with accurate information on sales, supported by educative and monitoring measures implemented by the Consumer Council.
"The administration adopts a three-pronged approach to ensure that the interests of prospective purchasers in private sales are adequately protected. In addition to urging REDA to refine its guidelines, we have invited the Consumer Council to step up its efforts in promoting consumer education," a housing official told legislators at the meeting.
"We have also secured the agreement of the Estate Agents Authority to issue updated circulars, reminding estate agents to provide accurate information to prospective purchasers and to disclose to their clients their relationship with the developers. The authority will also consider tightening licensing requirements for estate agents to enhance their professional standards," he said.
But legislators said there weren't enough measures to ensure that the interest of the consumers would be protected.
Unionist legislator Wong Kwok-hing said the revised guidelines don't have a scope for penalties on developers violating the rules.
Lawmakers also urged the administration to help set up a regulatory system to protect buyers' interests.
In response, Housing Secretary Michael Suen said the Consumer Council had not received any complaint since the revised guidelines were implemented. A legislation should be introduced as a last resort, he said.
(HK Edition 07/05/2005 page2)
