Stock-market analysts misled the public by saying property prices would fall 10 per cent this year, Secretary for Housing Dominic Wong Shing-wah said yesterday.
Mr Wong said prices had increased two per cent over the past few months and the market would continue to stabilise.
On Friday, two investment banks issued reports saying property prices would slump 10 per cent amid confusing government housing policies. UBS Warburg said people had lost confidence in buying property in light of the large supply of flats. Salomon Smith Barney urged investors to sell property shares.
Mr Wong yesterday accused the analysts of misleading the public. 'Our property market is moving towards a healthy and stable development. We don't see how these overseas businesses, especially these stock-exchange firms, can say our policies are confusing and that our property market is not good. I think this is misleading the Hong Kong public.'
He said the policy was to provide housing for the needy and help those who could afford to buy their own flat. 'Our policies are clear and we have achieved a lot,' Mr Wong said. 'The waiting time for public housing is shortened and there are good opportunities to buy subsidised housing or apply for loans.'
In May, the Chief Executive and his Executive Councillors came under fire after Mr Tung revealed that his 1997 target of producing 85,000 flats each year 'no longer existed' because of the financial crisis. His top aides said it remained a long-term policy.
