Letters to the Editor, December 27, 2012
I refer to the report ("Tax takes huge toll on sales, industry", December 21) and note that the chairman of the Real Estate Developers Association (Reda) Stewart Leung Chi-kin acknowledges that Hong Kong developers have been through several boom and bust cycles.

I refer to the report ("Tax takes huge toll on sales, industry", December 21) and note that the chairman of the Real Estate Developers Association (Reda) Stewart Leung Chi-kin acknowledges that Hong Kong developers have been through several boom and bust cycles.
What he fails to acknowledge is the development industry's role in creating and then accentuating these cycles.
The property industry is accustomed to reaping extreme profits during the boom and then leaving its customers to "hold the baby" when the markets decline.
I do not feel any sympathy now that sales have moderated, as the government must act for all citizens and the recent rapid rise in property prices is creating social difficulties.
The government's long- established policy of selling large tracts of leasehold land to a small group of influential developers who then act as if it is freehold land is a fundamental cause of subsequent property price manipulation.
If a development right was sold, rather than the land itself, and if the Lands Department offered smaller sites, such price manipulation could be controlled for the benefit of the whole community.