9
WEDNESDAY, MAY 10, 1978
+AND IF WE COULD ISOLATE THEM, CAN WE BE SURE THESE ACTIVITIES ARE AGAINST THE PUBLIC INTEREST?
+AND IF WS COULD BE SC SURE, HOW COULD WE DEAL WITH THEM WITHOUT ALSO HARMING THE INTERESTS OF GENUINE INVESTORS AND HOME BUYERS?+ MR. JEAFFRESON ASKED.
MR. JEAFFRESON SAID THAT IN CONSIDERING HOW TO ANSWER THESE QUESTIONS, WE MUST REALISE OUR LONG TERM GOAL, WHICH IS ENOUGH ACCOMMODATION, COMMERCIAL, INDUSTRIAL AND RESIDENTIAL, TO SERVE THE NEEDS OF THE COMMUNITY.
TAKING RESIDENTIAL ACCOMMODATION AS AN EXAMPLE, MR. JEAFFRESCN SAID PEOPLE NOW PREFERED TO LIVE IN SUITABLE INDEPENDENT AND SELF- OWNED ACCOMMODATION.
+YET THE ACUTE SHORTAGE CF LAND IN HONG KONG MEANS THAT THIS LEGITIMATE OBJECTIVE CAN BE MET, IN PART AT LEAST, ONLY BY PROPERTY DEVELOPERS BEING STIMULATED TO DEVELOP MORE INTENSIVELY THE LAND THEY ALREADY POSSESS, + MR. JEAFFRESON SAID.
MR. JEAFFRESON ALSO EXPLAINED THAT SPECULATION+ COULD BE HELPING THIS PROCESS AND IT COULD FURTHER STIMULATE SUPPLY BY ADDING TO DEMAND.
+ALTHOUGH THE INEVITABLE TEMPORARY PENALTY IS THAT IT RAISES PRICES MORE SHARPLY THAN WOULD OTHERWISE BE THE CASE, WE MUST NOT FORGET THAT ULTIMATE PRICES ARE DETERMINED BY THE LEVEL OF DEMAND FROM THOSE SEEKING BETTER HOMES IN WHICH TO LIVE AND THE COST OF PROVIDING SUCH HOMES.
REFERRING TO THE EXTENT OF SUPPLY OF NEW FLATS, MR. JEAFFRESON SAID IT WAS PREDICTED THAT ABOUT 30,000 NEW PRIVATE RESIDENTIAL UNITS WOULD BE COMPLETED IN 1978, FOLLOWED BY A SIMILAR AMOUNT IN 1979.
+THIS COMPARES WITH AN ANNUAL AVERAGE OF 19,000 OVER THE LAST FIVE YEAR,+ MR. JEAFFRESON SAID.
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