Real estate group refuses to tighten the rules on internal sales
Despite growing concern that internal property sales lack sufficient transparency, the Real Estate Developers Association (Reda) has rejected suggestions that it alter its guidelines.
The guidelines were good enough to protect the public interest, association vice-chairman Stewart Leung Chi-kin said after a meeting of executive committee members.
'We have taken note of the market's concerns and members have agreed to follow the existing guidelines,' he said.
'The [existing] guidelines are good enough to regulate the industry. We have no plan to revise them.'
Under the guidelines announced last month, a price list and a list of the units offered for private sale should be made available to prospective purchasers.
The guidelines also require members to take reasonable steps to inform buyers when information in sales brochures changes.
Members are also required to publish accurate sales figures.
Concern that the internal sales system may not be transparent enough arose when Sun Hung Kai Properties announced that it had sold a penthouse at The Arch in Kowloon for a record $31,000 per square foot, or $168 million. It later said the deal included the purchase of three other flats at a discount.
However, on Tuesday, the developer said the buyer had purchased only the penthouse.
Mr Leung said: 'The media or the government can publish a company's name if it does not follow the guidelines.
'Reputation is very important to a company. This is more efficient than introducing new rules to punish the company for deviating from the guidelines.'
Members who attended yesterday's meeting include representatives from major developers such as Sun Hung Kai Properties, Sino Land, Henderson Land and Hang Lung Properties.
The issue will be discussed again early next week at a meeting between Reda, the Consumer Council, the Estate Agents Authority and Director of Housing Leung Chin-man. The director of housing and Estate Agents Authority representatives met property agents yesterday to discuss how to improve agents' standards.
