Confidence in Hong Kong has been undermined by two major factors: the worsening external economy and falling real-estate prices. Although little can be done on the first factor, it is still within the control the SAR Government to control the supply of land and housing and therefore their prices.
Although land sales nowadays are cut to a minimum and on some occasions land was withdrawn from sale, the market is still threatened by the huge land reserve and the big housing projects along the new railway lines being built. The land reserve has the same impact in the market.
It seems to me that Chief Executive Tung Chee-hwa is still struggling with his housing policies and his ego. After seeing so many people jumping to their death because they were in debt, the Government should have the moral courage to make the policies right in an unambiguous and forceful way. Stop the supply.
A few years ago Lee Wing-tat, the ex-legislator, was one of the key supporters of Mr Tung's erroneous housing policies. These days he has emerged to fight for the suffering home-owners by calling on the banks to lower mortgage rates.
If Mr Lee has the courage of his convictions to change his stance, can Mr Tung do the same?
JACK NG
