A guideline to increase the transparency of internal sales of partly built flats will be issued by the Real Estate Developers Association, sources said yesterday. The rules were awaiting the government's approval, they said.
A 14-point draft was given to the Housing, Planning and Lands Bureau after developers reached a consensus on Tuesday.
Under the proposal, developers must be 'honest' in disclosing the number of flats for internal sale and their price. The association will be empowered to carry out regular inspections.
There have been strong calls for the government to regulate internal sales, in which flats are sold to favoured customers, often at a discount, in advance of sales to the public.
Developers and the association met this week, but neither side is saying what was discussed.
The draft proposal is an expansion of a four-point guideline issued to association members two months ago. It is understood the draft requires developers to release sales information, including details of flats and prices, at least one day before an internal sale. Buyers should be informed of any changes.