Medium-sized developer Tai Cheung (Holdings) yesterday expressed reservations about a proposal from the Real Estate Developers' Association (Reda) for land sales to be suspended for two more years.
Tai Cheung chairman David Chan Pun said: 'This is an impractical proposal.' After the company's annual meeting, Mr Chan said the proposal could be good for developers but would affect the financial strength of Hong Kong.
Mr Chan said the Government was already expected to report a multi-billion dollar deficit this fiscal year because of the recession and a nine-month suspension of land sales until the end of next March.
The land sales were suspended as part of the Government's measures to stimulate the economy and the property industry.
'I am afraid Hong Kong's rating will be downgraded by international credit-rating agencies if the Government decides not to sell land until 2001,' Mr Chan said.
The controversial proposal was unveiled by Reda's executive committee chairman Lo Ka-shui early this month.
He suggested the Government extend the land-sales freeze by two years to March 2001.