'Buyers at risk' as Hong Kong extends flat presale period to 30 months

Developers will be allowed to pre-sell unfinished projects 10 months earlier to meet market demand, the government announced yesterday.

But critics said it could put buyers at greater financial risk, with one warning that some could be pushed into "disaster".

The government said the allowed presale period before flats are completed would be extended from 20 months to 30 months.

The change, which will take effect next month, will help developers clear a stock of 15,000 units ahead of an expected price fall prompted by interest rate rises in the United States.

Developers welcomed the extension and the Secretary for Transport and Housing, Professor Anthony Cheung Bing-leung, said: "The measure is to address society's demand for more housing units in the near future."

But former lawmaker Lee Wing-tat, who now runs concern group Land Watch, said: "The government is helping developers clear their stock before prices fall. This will push buyers into disaster."

The extension will make 15,000 uncompleted units eligible for pre-sale, said Midland Realty. Major projects include YoHo Town phase three in Yuen Long and the fourth phase of Double Cove in Ma On Shan.