Action plan for older buildings

THE marketability of older buildings should be improved as part of a strategy to improve the 'highly concentrated' property market, according to the Consumer Council.

There would be a greater supply of older flats, the council argues, if banks were more confident about providing mortgages.

It threw its weight behind a proposal by the Hong Kong Institute of Surveyors to devise a recognised building certification programme to assess the quality of older buildings.

The council will also discuss with developers providing comprehensive building warranties to improve long-term saleability.

It said the setting up of a mortgage corporation would help loans for older properties.

Improvement in marketability is among recommendations made by the council to 'improve the efficiency of the market structure, market behaviour and market information'.

The proposals will be 'more efficient and effective than direct government intervention, such as subsidising new buyers,' it says.

The council says the Government should outline its planned land sales over the next five years to help new entrants and make it more difficult for developers to manipulate the market.

The council says the Government should: Speed up land planning and selling procedures; Review the scale of sale sites to maintain a balance between competition and comprehensive development; Re-zone more industrial areas for homes; Speed approvals for redevelopment; Build more public flats; Strengthen the role of the Housing Society and Land Development Corporation; Look at cross-directorships between banks and developers; Work with developers for adequate and accurate information on flat sales.