Letters | Sale of Hong Kong homes by tender needs urgent regulation
- Readers discuss the lack of transparency of a sales tactic favoured by developers, an opportunity for Hong Kong to strengthen its bonds with the Arab world, and encouraging young people to pursue their dreams
The lack of transparency in this albeit legal sales tactic demands attention if stakeholders’ interests are to be protected and the stability of the financial system ensured.
Typically, developers of mass-market homes will first try to sell them by offering several price lists in batches. But if the market response is tepid, the developers may opt to sell their properties by tender. Such a method, in which buyers submit their bids without knowing what the prevailing price is, has been heavily criticised as being opaque and unfair to the buyer and tending to inflate prices.
Insufficient transparency and the lack of comprehensive disclosure requirements and deterrence measures make it challenging to effectively address any malpractice. The lack of transparency not only distorts market perceptions but also harms potential buyers’ interests.
Local banks have recently tightened their mortgage policies, such as by reducing the cash rebate offered to borrowers, to mitigate risk. I believe reinstatement of the stress test is essential to maintaining financial stability, and protecting borrowers from excessive financial burdens.
Further, the Sales of First-hand Residential Properties Authority should undergo a critical review of its capabilities and performance. The review should focus on evaluating the authority’s ability to ensure transparency in property sales, detect fraudulent transactions and regulate related-party transactions effectively. The Audit Commission, as an independent body, is well-suited to conduct this review.
Collaboration between the Sales of First-hand Residential Properties Authority and other regulatory bodies is also crucial. This collaboration will facilitate the sharing of information and expertise, enabling a more comprehensive and efficient investigation process. By working together, regulatory authorities and stakeholders can create a robust system that upholds market fairness and safeguards the interests of all parties involved.
Stanley Ip, Sai Wan Ho
Let universities do more to welcome future Arab leaders
So why are our Hong Kong government and business sector so eager to cultivate ties with Middle Eastern markets?
Katrina Thomas in her article in the May/June 1979 edition of Aramco World, titled “America as Alma Mater”, understood the reality of how Saudi Arabian men in high positions – in academia, commerce, the oil industry and at the top levels of government – were increasingly graduates of US colleges and universities. Their bonds with the US would lead them to be more friendly with Washington and even London, given that several current heads of state in the Middle East are graduates of the Royal Military Academy Sandhurst and its affiliated colleges.
It’s time for our leaders in Hong Kong to step up to offer more educational opportunities to our Arab friends, and our African and Latin American friends for that matter, and import more talent from there, not just mainland China. Then Hong Kong’s position in the Belt and Road Initiative would be more meaningful.
Joseph Chan, chairman, Silk Road Economic Development Research Centre
When our young take flight, Hong Kong would too
In a world that often prioritises material success and the pursuit of conventional career paths, we are failing to fully nurture young people’s passions. Far too many of us find ourselves trapped in lifestyles that do not ignite our innermost desires, leading to a sense of disillusionment and unfulfillment.
This is a tragic outcome not only for the individual but for our society as a whole. When we stifle the creative potential of our youth, we risk losing the innovations that could shape a brighter future.
That is why we must encourage our students to pursue self-actualisation. Help them cultivate their unique talents and forge their own paths, and we will instil in them a sense of purpose, resilience and boundless possibility.
Wong Wan Tim Katie, Kwai Chung
