Executive Councillor Leung Chun-ying says the slump in the property market will only be short-term. Demand for housing remained strong, he said.
'Over the past two months, what happened in the property market was due to financial and liquidity problems,' he said.
Mr Leung said the interest rate trend and bank lending policies were clearer and buyers were emerging.
The Exco member, who runs a surveying and real estate company, said demand for housing was huge and people were keen to move into bigger flats.
He said property transactions had slowed recently, mainly because banks could not fix mortgage lending policies and were wary of lending in an environment of uncertain interest rates.
Prices for residential flats have dropped by as much as 25 per cent from their peak in July.
