Nineteenth Year in Review
Land Registrar's Statement
I am pleased to present the report of the Land Registry Trading Fund for the year ended 31 March 2012.
The impact of the European debt crisis has taken a toll on us, like the rest of the world. Local economic growth slackened in the second half of 2011, which was aptly reflected in the property market. In particular, the monthly intake of sale and purchase agreements for building units had dropped below the 10,000 bench mark since July 2011 and did not recover until March this year. This inevitably had a bearing on our revenue, which witnessed a 21.7% decrease to $456.5 million for 2011/12. On the other hand, we managed to contain our operating costs with a decrease of 0.2% in 2011/12, despite some 5% increase in the consumer price index during the same period. As a result, we still manage to achieve a profit of $98.3 million for 2011/12, which translates into a 19.7% return on fixed assets. I would like to thank my colleagues for their remarkable efforts in upholding the effectiveness of our operation during this challenging time.
I am proud to report that our operational efficiency is achieved while maintaining the highest level of services to our customers. Last year, we exceeded all the targets set out in our performance pledges and initiated further enhancements. In particular, we introduced two new versions of the e-Memorial Form. These enhanced versions are equipped respectively with auto-fill and bulk data input functions, which greatly improved the efficiency and accuracy in completing the form. As a further facilitation measure to our users, we have uploaded the latest editions of the Street Index and New Territories Lot/ Address Cross Reference Table for free online browsing.
It is also most encouraging that our efforts in promoting service excellence have won the recognition of the community. Last year, we were honoured with the Bronze Award of the Service Enhancement Award (Small Department category) of the Civil Service Outstanding Service Award Scheme 2011. Two of our colleagues were respectively awarded with The Ombudsman's Awards 2011 for Officers of Public Organisations and the Secretary for the Civil Service's Commendation Awards 2011. The customer service survey conducted in late 2011 also revealed a very high level of satisfaction among our customers on our spectrum of services.
We will continue to exert our best efforts in serving our customers and identifying new service opportunities. In this regard, we are exploring the feasibility of providing a transaction monitoring and notification service. This new service, if introduced, would provide an early email alert to property owners of instruments presented for registration against their properties. The new service would be a useful tool for owners to better protect their properties and would help prevent property fraud.
In the longer run, the best means to secure property title is to implement a title registration system. Last year I reported about the divergent views held by major stakeholders as to whether the mandatory rectification rule under the Land Titles Ordinance (LTO) should be replaced by the principle of immediate indefeasibility. To bridge this gap, we have developed a “Two-stage Conversion Mechanism”, whereby the mandatory rectification rule would be applied during the first stage of conversion for twelve years and the immediate indefeasibility principle would be adopted after the final stage of full conversion. The stakeholders' feedback is generally positive. I am looking forward to an early consensus with stakeholders, which would form the basis for further public engagement. In the meantime, we are developing a teaching kit on Hong Kong's land registration system for the subject of liberal studies in the new senior secondary curriculum. By instilling a better understanding of our land registration system and its coming reform among youngsters, I hope that this could provide further impetus for the early implementation of the title registration system.
Looking ahead, 2012/13 could prove to be yet another challenging year for us amidst the ongoing global economic uncertainties. I would like to express my gratitude towards our customers and partners for their unfailing support over the past year. I am sure that we could continue to count on you to help weather any adversities that lie ahead.
Olivia NIP, J.P.
The Land Registrar & General Manager
The Land Registry Trading Fund, Hong Kong
25 September 2012