Letters to the Editor, October 19, 2014
I refer to the report ("Flat sales buoyant at Ma On Shan development", October 12). Seldom does a day go by without a newspaper reporting on the ridiculously high price of flats in Hong Kong.

Seldom does a day go by without a newspaper reporting on the ridiculously high price of flats in Hong Kong. Your article described how homebuyers snapped up 187 of 200 flats released to the market on October 11. The estimated average price was HK$12,800 per square foot. So what are the underlying reasons behind skyrocketing property prices?
High demand is the main factor. Hong Kong is a small place, but with a population of seven million and limited supply of suitable accommodation there is a constant demand, particularly for small flats.
Government policies are adding fuel to the fire, such as the decision [now reversed] to end the Home Ownership Scheme.
It is plain to see that there is a supply-demand imbalance in the property market, but the government is doing little to address the problem. It is not right that middle-class families have to use most of their income to buy a small flat, not to mention the obstacles to home ownership faced by those on lower incomes. It is difficult, if not impossible, for many to buy a decent home in Hong Kong. For many young people it is an impossible dream.
Ridiculously high property prices are destroying the future of the city. A growing number of people are living in inadequate flats. Hongkongers are losing hope in the future of the city.