Property squeeze warning

PUBLISHED : Monday, 27 October, 2003, 12:00am
UPDATED : Monday, 27 October, 2003, 12:00am

The recent measures introduced into the property market by the government will have little positive effect on public confidence.

The government's attempt to squeeze the supply will fail since there are many sources of supply for housing units.

The government fails to recognise that as the availability of land is limited, it is the price and movement, not the quantity, of land supply that matters most to those who have, or who are about to, invest in the property market.

Selling land cheap now will not only reduce the future revenue of the government but also undercut resources available to future generations. The only way forward for the government is not to sell land at cheap prices and not use prime land of huge value to build low-return housing units. Land sales must generate the revenue required by the government to serve the needs of Hong Kong people for the next 20 years.

Good price and good return make for good government.

KEN CHEUNG, Chung Hom Kok