THERE is no cause for alarm over the sharp slowdown in housing construction by private sector developers witnessed over the past six months, Secretary of Housing Dominic Wong Shing-wah says .
The Government's Rating and Valuation Department last month revised down by 17.5 per cent the number of small to medium-sized flats it expected to come on stream this year.
However, Mr Wong yesterday predicted there could be a surprise last-minute flurry in supply towards the end of the year, to shove the Government's private supply target back on course.
Speaking at the official opening of the inaugural Asia International Property Market (AIPM) show at the Hong Kong Exhibition and Convention Centre, Mr Wong said: 'Last year there was a late surge of property developers putting flats on the market. The same could happen this year.' A 30 per cent drop in mass residential prices and changes in Government regulations, inhibiting pre-sales, have led to some developers slowing their rate of apartment production.
With the slowdown in the local real estate sales market, international property consultants have reported a sharp increase in funds going abroad.
Recent surveys have highlighted a recent drop in economic investor confidence in Hong Kong, with the transfer of sovereignty in 1997 approaching.
