Law enforcers must get tougher on flat sale abuses
The public could be excused for thinking that the law seeking to regulate sales of new flats has either been dropped or is still languishing before the legislature.
The public could be excused for thinking that the law seeking to regulate sales of new flats has either been dropped or is still languishing before the legislature. Despite being for enforced more than a year, it appears this addition to the statute book is being ignored.
That impression has been reinforced by a damning Consumer Council report. A probe by undercover agents in the summer found that sales of flats at 10 of 17 developments were rigged with misleading and unfair practices. This included selling flats in small batches to mislead buyers with mismatched prices. Yet there has not been a single prosecution.
The 160-page report is full of examples of questionable tactics. For instance, prospective buyers were encouraged to file multiple applications in what appeared to be a deliberate attempt to inflate subscription rates. Buyers were also put in a difficult position by being given just three minutes to decide which flat to choose.
Such irregularities are nothing new. That they remain commonplace in the industry suggests enforcement is woefully inadequate. The situation is further complicated by the fact that not all practices are covered by the law.
Responding to the watchdog's criticism, the Sales of First-hand Residential Properties Authority said it filed at least one case per week for prosecutors' consideration, though decisions rest with the Department of Justice. It said the law had struck a balance between sales transparency and flexibility for business decisions. Separately, developers also defended their sales arrangements. The responses are hardly reassuring for homebuyers looking forward to more protection. The council's findings should give law enforcers fresh impetus to act tougher.
Hopes were high when the government vowed to stamp out unfair sales arrangements with a law. It is meaningless if the enactment is not followed by strong enforcement. The last thing the public wants to see is officials yielding to pressure to pass a law and immediately consigning it to oblivion.
