'Government Will Act On Tender Sales When Needed'

Housing Secretary Frank Chan on Tuesday warned developers that the government is keeping a close eye on a recent surge in sales of new residential flats by tender, calling the practice “unsatisfactory” because it’s not transparent enough.

Speaking at a special Finance Committee meeting in Legco, Chan said the government will “take all possible and viable measures when necessary to make sure that the level of transparency of sales of first-hand residential properties by tender is the same as that for open sales with price list.”

Government data shows almost 30 percent of new flats sold in Hong Kong over the first quarter of 2019 were sold by tender, double the percentage from the last quarter of 2018.

Lawmakers have been railing against the practice, as developers can get around regulations to publish price lists three days before flats go on sale. No prices are set for flats sold by tender, which go to the buyer who makes the highest bid.

Chan also revealed that regulators are looking into possible breaches of laws governing sales of first-hand flats.

He said the Estate Agents Authority is investigating a number of cases and will remind agents to strictly observe the relevant legislation. Chan said the Sales of First-hand Residential Properties Authority will also do their part to strictly enforce the law.