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Developers try to get round control measures

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Developers have tried to water down the impact of tightened controls on their flat sale tactics that took effect yesterday, exploiting an ambiguous clause that the government has laid down to limit the potential for price manipulation.

The new government guidelines require a developer to put up half the 'total number of flats available for sale' in the first batch released and list all their prices.

This was designed to force developers to put more flats on the market when launching a sale, instead of only a few dozen to whet buyers' appetites.

But it did not clarify whether 'the total number of flats' meant the number the Lands Department had approved for sale.

In its version of the guidelines sent to members last night, the Real Estate Developers Association says the 'total number of flats' means the number a developer selects for sale in each batch.

For example, it says a developer can split a 1,000-flat development into two construction phases and sell the 500 flats of each phase in four batches. For the 125 flats in each batch, the developer need only launch half of them - or 63 flats.

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