Recently, media reported that some Mainland students suffered monetary loss from a suspected fraud case involving renting flats in Hong Kong through an unlicensed estate agent. I would like to remind consumers to stay vigilant, especially non-locals who are unfamiliar with the housing and rental markets in Hong Kong. Whether you are buying or renting a flat, you should better appoint a licensed estate agent for greater protection.

Purchasing uncompleted properties situated outside Hong Kong (“UPOH”) poses great uncertainties, particularly when buyers are unable to physically inspect these properties before completion of the transaction. It will be better for consumers to appoint licensed estate agents to handle the relevant transaction as they are regulated by the Estate Agents Authority (“EAA”). Recently, the EAA updated its guidelines for licensed estate agents to follow when handling the sale of UPOH and some of the requirements will make it easier for consumers to distinguish between licensed and unlicensed agents.

With the aim of encouraging licensees to continuously improve their professionalism and uphold the spirit of lifelong learning, the Estate Agents Authority (“EAA”) launched a voluntary Continuing Professional Development (“CPD”) Scheme in May 2005. After nearly 20 years, the EAA will introduce a Mandatory CPD Scheme soon and implement Phase I for newcomers in the first quarter of 2025.

Following the cancellation of the “harsh measures”, the property market in Hong Kong has shown a gradual revival, resulting in many transactions as reported by the media. In light of this, I would like to remind consumers to remain calm and prudent, and refrain from making hasty purchase decisions in order to protect their own interests.

Hong Kong people’s enthusiasm for purchasing properties outside Hong Kong is still strong. However, purchasing undeveloped properties abroad incurs more risks and uncertainties than purchasing completed properties which are ready for inspection. The Estate Agents Authority (“EAA”) recently issued a series of new guidelines to licensed estate agents on 28 December 2023, aiming to provide consumers with better protection and build consumer confidence in engaging licensed estate agents when purchasing uncompleted properties situated outside Hong Kong (“UPOH”). The new guidelines will come into effect on 1 July 2024.

Following the implementation of the tenancy control regime for subdivided units (“SDU”) under Part IVA of the Landlord and Tenant (Consolidation) Ordinance (“Ordinance”) in 2022, the Estate Agents Authority issued a relevant practice circular last year providing guidelines for estate agents and salespersons to follow when handling SDU tenancies, among which they are required to inform clients about the security of tenure and rent regulation as stipulated in the Ordinance, including the two terms of two-year tenancy.

The tenancy control regime for subdivided units (“SDU”) under Part IVA of the Landlord and Tenant (Consolidation) Ordinance (“Ordinance”) has been implemented for over a year. The EAA also issued a relevant practice circular last year to regulate the practices of licensed estate agents in order to comply with the Ordinance. Taking the initiative to further protect the interests of the underprivileged in the community, the EAA has recently made every effort to facilitate the estate agency trade to sign the “Charter on Good Practices of Estate Agents in Handling Subdivided Unit Tenancy” (“the Charter”), thereby encouraging the trade to step forward in fulfilling their corporate social responsibilities.

A high degree of integrity in the financial systems could help maintain the role of Hong Kong as an international financial centre. This requires a joint effort from all stakeholders to combat money laundering, and the estate agency sector does share the responsibility by conducting a series of measures, including performing customer due diligence.

As you may know, the tenancy control regime for subdivided units (“SDU”) under Part IVA of the Landlord and Tenant (Consolidation) Ordinance (“Ordinance”) has come into effect on 22 January 2022. Not only tenants and landlords should be aware of their rights and obligations under this Ordinance, estate agents handling such tenancies also have an important role to play.

In the Year of the Rabbit, may I wish you all good health and good prosperity. At this moment of celebration and the start of a new year, let us review our work in the past year and look forward to the future. Here, I would like to share with you some of our 2022 figures.