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John Tsang hits out at developers' sales practices

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The financial secretary yesterday expressed concerns over confusing property sale prices and practices, and urged developers not to give out misleading information.

'Property developers should not mislead the market or deceive the public,' John Tsang Chun-wah said on the second day of the Legislative Council debate on the policy address.

Tsang said he was aware of the confusing sales tactics and news about transaction prices in the new-homes market. He said he wished developers would be disciplined and provide accurate information.

'I have to point out that if the market lacks transparency, and hence causes unfairness and instability in the property market,' he said, 'the government will have to take action based on the principle of maintaining stability in the macroeconomic environment, to protect the public and consumers' rights.'

Tsang's comments were made after speculation that the recent record-breaking sale of a duplex at Henderson Land Development's 39 Conduit Road for HK$439 million, or HK$88,000 per sq ft of saleable area, might not be all it appeared.

The developer also received criticism for the 'deceptive' marketing gimmick of selectively numbering the floors of the 46-storey luxury residential project so it could sell units on the auspiciously numbered '66th', '68th' and '88th' floors.

But in response to concern about rising property prices and that flats were becoming unaffordable, Tsang said nearly 90 per cent of the transactions in recent months were for small- and medium-sized flats, and most buyers were users.

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