Exercise caution when purchasing properties following the cancellation of “harsh measures”


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.

First, I would like to remind consumers that engaging licensed estate agents to handle property transactions has its merit. Licensed estate agents are regulated by the EAA which ensures their compliance with certain professional standards and provision of quality services to consumers. This regulatory oversight serves to protect the interests of all parties involved in the transaction. Consumers can verify if an estate agent holds a valid licence on the EAA website and find out whether the agent has been subject to any disciplinary action in the past three years.

Separately, media reports also indicated that there is a surge in transactions involving first-hand residential properties subsequent to the cancellation of the “harsh measures”. Here, I would like to remind the consumers that it is essential for prospective purchasers to pursue all relevant information prior to making any purchase decision or entering into any sales agreement. They should thoroughly read the latest sales brochure, price list, sales arrangements, transaction records, legal documents, and particularly any information relating to mortgage arrangements. It is best that consumers seek their own advice from banks or mortgage institutions.

In the process of a transaction, estate agents may provide prospective purchasers with information regarding mortgage loans. Nonetheless, purchasers should note that estate agents are not allowed to give any assurance to their clients that they will be able to successfully obtain a mortgage loan or on the amount of the mortgage loan that could be successfully obtained. Prospective purchasers should note that mortgage loan amounts are affected by a host of factors, including the applicant’s income and repayment ability, property type, and market fluctuations. Therefore, prospective purchasers should consult their banks prior to making any purchase decision or paying any deposit. Failure to fulfill the criteria for a property mortgage application or the mortgage loan amount ultimately approved is lower than anticipated may render the purchaser unable to complete the transaction and have his deposit forfeited.

Last, I sincerely hope that all consumers can acquire their desired homes smoothly and successfully.