Experts have given a mixed reception to the new rules to increase information transparency of first-hand residential properties. Some believe that the rules will protect prospective purchasers of first-hand residential properties and help the government in formulating statistics, yet others call them "old wine in a new bottle". Lam Yik-Fei / Bloomberg

New measures are to be enforced soon to protect prospective homes buyers by enhancing transparency in the sale of first-hand residential properties.

Under the new rules, vendors will be required from June 1 this year to reveal information on which properties are to be offered for sale on a particular date, which apartments have already been sold, and which properties are still available for selection at the time.

Eugene Fung Kin-yip, director of the Sales of First-hand Residential Properties Authority (SRPA), said on Wednesday purchasers need to be protected as it's not easy for them to know the availability of first-hand residential properties they can choose from when they are in a development/phase sales office.

Real estate experts have given the move a mixed reception.

"The regular disclosure of such vital information will not only protect prospective purchasers of first-hand residential properties, but will also be of great help to the government in formulating statistics," said Vincent Cheung Kiu-cho, national director of Greater China at consultant Cushman and Wakefield.

Having seen the inflated number of registrations of intent during sales of first-hand residential properties, the SRPA will also work closely with the Real Estate Agents Authority to require vendors to make public the number of registrations of intent of which property agents are the registrants, if and when vendors make public the number of registrations of intent or cashier orders they have received in respect of a project's development phase.

Sammy Po Siu-ming, chief executive of Midland Realty's residential department, however, saw it differently, calling the new regulations "old wine in a new bottle".

"For large real estate agencies, the requirements are unlikely to have much of an impact, while small- and medium-sized agencies may need more time to get used to them," he said.

As Wednesday marked the second anniversary of the implementation of the Residential Properties (First-hand Sales) Ordinance, Fung noted that the supply of first-hand residential properties in Hong Kong has not taken a hit as some people thought.

At the end of last month, property developers had launched 160 residential projects offering 27,900 first-hand units. The number of such units released last year reached 15,900.

In a report released last Friday, the Transport and Housing Bureau said about 78,000 first-hand residential apartments will be available over the next three to four years.

Cheung said he believed the supply of first-hand residential apartments will continue to rise steadily in future.

Po said the new measures, aimed at bringing more favorable changes to the sales culture of first-hand residential properties, will not dampen the enthusiasm of prospective buyers of first-hand residential properties.

However, Cheung said the government should refrain from regulating too much to make developers and agents feel they are being bound hand and foot. The focus, he said, should still be on improving transparency and disclosure of sales information.

sophia@chinadailyhk.com

(HK Edition 04/30/2015 page8)