Economy

Hong Kong property market under close watch

(Xinhua)
Updated: 2011-05-20 13:15

HONG KONG -- Hong Kong's Chief Executive Donald Tsang on Thursday said his government will closely monitor the property market and introduce more measures when necessary to maintain the city's economic and financial stability.

Tsang told the legislators that it is the government's policy objective to ensure stable and healthy development of the property market. Facing low interest-rates and a capital overflow, it will remain vigilant against the possible risk of a property bubble.

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Despite a drop in short-term speculative activities in the past six months, continuous increases were seen in flat prices. Tsang noted the government will ensure sufficient land supply and adopt a more active approach to initiate more land sales.

Referring to the public grievances triggered by house price hikes, he said the My Home Purchase Plan and other measures will help stabilize the market in a more comprehensive manner and help people buy flats.

When asked if the government will resume construction of Home Ownership Scheme flats, he said the issue involves the supply and use of land, adding the My Home Purchase Plan is a more effective way to increase flat supply. He said he will deal with the issue in his next policy address.

Expecting the quantitative easing measures of many countries to end soon, he advised the public to carefully assess affordability when purchasing homes because interest rates may rise.