Property prices: Should the government intervene?
The government has indicated it plans to intervene in the property market to try to 'push up prices in an effort to drag Hong Kong out of its economic slump' (South China Morning Post, September 26).
Our officials just do not get it.
An economy based on property sales is not a real economy but a bubble economy.
The economic problems which we face now are due, in part, to the crazy property prices. Because of this everything got inflated, making it more economically viable for companies to move their businesses elsewhere.
A real economy is based on output of products and services, not just inflating property prices.
If we go the way which we followed before 1997, it would not surprise me if the US-Hong Kong dollar peg would not hold, because the Hong Kong dollar will be of little value.
The property market will be one big bubble, waiting for someone to put a 'needle' in it.
We should remind ourselves that even though property prices may fall drastically, they are still among the highest in the world.