Opinion | Hong Kong's property market could not thrive without our core freedoms
Albert Cheng says the Leung administration appears intent on undermining Hong Kong's core values, most notably the rule of law
Hong Kong's property prices will remain high and continue to rise because of the government's land policy and the surplus funds in the market.
But the ultimate cause of these sky-high prices is our strong foundation of prosperity and stability, and our enduring core values - our rule of law, and our freedoms and human rights.
All these factors have made Hong Kong one of the world's most liveable cities and raised the value of our land.
Immediately after the global financial crisis, Beijing launched a stimulus package estimated at 4 trillion yuan (about HK$4.5 trillion at exchange rates then) to fuel domestic demand and boost the slowing mainland economy. As a result, the economy began its rapid growth, enabling a new, wealthy elite to rise.
The appreciating value of the renminbi then spurred a flood of mainland money into the Hong Kong property market, further pushing up prices.
Judging by the usable floor space in many Hong Kong properties and other practical factors such as air quality alone, it's ridiculous that the prices of our luxury apartments are so much more expensive than those in neighbouring Shenzhen.