THE property market on outlying island Cheung Chau is set to revive after the Legislative Council's passage of the Block Crown Lease (Cheung Chau) Bill last week.
Most property transactions on the island had been stalled since last November by a row between the island's biggest landlord, Wong Wai Tsak Tong, and its sub-lessees.
Estate agents and bankers believe the new law solves the problem of private property rights by stripping Wong Wai Tsak Tong of its ownership of about 90 per cent of private land on Cheung Chau.
Christopher Kwong, branch manager of Cheung Chau for First Pacific Bank, said the bank had yet to examine the new law's details and its implications regarding bank mortgages.
In principle, he said the law had resolved the problem of property rights on Cheung Chau and that it might lead to more applications for mortgage loans.
Estate agents said the law was a boost for the island's property market, but they expected transactions would not increase substantially until the ordinance's official gazetting.
Edmond Au, property consultant at a Cheung Chau agency, Wing On Tong Realty, said there had been an increase in enquiries and property sellers were firmer in asking prices.
