The economy of Hong Kong has barely improved since the financial crisis a few years ago, and the property market is in a sorry state that has not been seen for a long time. Events on 11th September and their aftermath added greatly to our difficulties. Many industries and professions are devastated and the property market, which has always been sensitive to the political and economic climate, is particularly vulnerable at this time.

During the past quarter of a century, real estate was a major driving force behind the economy of Hong Kong, and the boom in the property market contributed substantially to the territory's economic vitality. With the shrinkage of that market many citizens become circumspect when it comes to purchasing properties, and estate agents have entered a trying period of adjustment. Some practitioners have been forced to abandon the trade, or to leave it temporarily with the hope for better days. Those who hold on are operating their business in considerable hardship, with diminished income.

The writer Mao Dun once said: "Life is like a wild rose. To say that it does not have pricks is meaningless self-deception, but to hate it because it is pricky to handle is also inappropriate. We should target the pricks and eliminate them. There is no need to be saddened by what is bygone, or to boast about the future. We must be able to face reality. Those who are genuinely courageous are bold enough to face reality."

Practitioners in estate agency should face up to reality with a positive attitude. They should not indulge in memories of the past, nor should they be frustrated by the difficulties that confront them now. More importantly, they must refrain from unrealistic fantasies about the future. The elimination of the weak would appear to be inevitable in the fierce competition nowadays. It thus makes a lot of sense for practitioners to cast their eyes on the future, and equip themselves to raise their own competitiveness for the challenges ahead.

In order to provide timely relief to the trade, the EAA has obtained permission from the Legislative Council to reduce fees by 30% from 1 January 2002. Licensees who wish to leave the trade temporarily may now preserve their credentials and re-enter the trade unconditionally within 24 months from the expiry of his last held licence. There is also greater flexibility in the switching between the two categories of licensees to enable estate agents to obtain the cheaper salesperson licence without having to fulfil the requirements for fresh entrants.

The Info-Hotline Service at the Rating and Valuation Department has now been enhanced with the cooperation of the EAA to provide, in addition to information on the area and age of each property, the user restrictions as well. This service, now more convenient to use, is available 24 hours a day and the cost is reduced from $45 to about $12 per search. Early next year the EAA will also conduct a comprehensive fee review, upon completion of the licence renewal exercise.

As to long-term development, the EAA is positively carrying out research on a continuing professional development scheme as a further step to consolidate the professionalisation of the trade. A survey is now being conducted to collect practitioners? views and opinions with regard to continuing professional development. The Authority is also in the course of consultation with the trade and institutions of tertiary/vocational education with a view to devising a practical and cost-effective scheme of continuous training.

It is anybody's guess when the property market will be restored to its former prosperity. In any case the future shape of the property market will have much to do with external factors such as world politics and mutations in the global economy. But we are certain about one thing: housing is one of the essentials of life and the demand for accommodation will persist. Thus estate agency remains a highly viable industry in the long term. Whether practitioners can overcome the present difficulties will depend very much on their determination and resolve, which will provide the key to success.

Grace M Y Chow
Chief Executive Officer

The Chief Executive Officer was guest of honour at a graduation ceremony for diploma courses organised by the Hong Kong Institute of Real Estate. She is seen here with the Chairman of the Institute, the President of the China-Hong Kong Real Estate Association, and other guests at the ceremony.