Hong Kong tightens property marketing

Hong Kong will tighten marketing regulations for apartments under construction to crack down on misleading sales tactics. The tactics from property developers are believed to have triggered a surge in prices this year.

The new rules require developers to boost transparency about the size of apartments for sale. They also aim to ensure sellers disclose accurate information on floor numbering. Hong Kong developers will need to publicly disclose sales of apartments under construction within five working days of finalizing sales, down from the current one month period.

This year, home prices have jumped 30 percent in Hong Kong. This sparked a public outcry over housing costs and put pressure on the government to increase land supply and review developer regulations.

Meanwhile, Hong Kong has increased required down payments on luxury homes to 40 percent that's up from 30 percent. The new rules aim to cool the overheated market, but reactions are mixed from property agents.

Li Wei, Executive of Hong Kong Property Agency said "The new measures will have little effect. But one policy which raised the downpayments to 40 percent will impact on luxury homebuyers."