THE Government's resolve to keep a tight lid on mortgage lending shows signs of weakening. Mr Hamish Macleod told the Hongkong Real Estate Developers Association there would be no immediate relaxation of the present 70 per cent ceiling on mortgage loans, yet he proceeded to undermine his own stance by promising a monthly review of the guideline, adding that the Government's position was not ''set in stone''.
The property developers were quick to read the underlying message, perhaps too quick. The price of property is already so high that first-time buyers have been driven out of the market, and any relaxation of the tough regime will not help them. While theimportance to the Hang Seng index of successful property stocks cannot be underestimated, many businesses would welcome some further relief from the inflationary spiral of ever-increasing rents.