6
WEDNESDAY, APRIL 11, 1979
+ IN THE SALE OF LAND MARKET FORCES HAVE BEEN USED AS AN ALLOCATIVE PROCESS WHICH IS NORMALLY SUPERIOR TO ANY ALTERNATIVE, HE SAID,
RAPID EXPANSION IN THE DEMAND FOR LAND AND PROPERTY ACCOMPANIED BY CONSIDERABLE SPECULATIVE ACTIVITY HAD LED TO SIGNIFICANT INCREASES IN LAND PRICES.
+ IN THE MARKET SITUATION WE HAVE BEEN EXPERIENCING RECENTLY, WHERE DEVELOPERS CAN PRE-SELL ACCOMMODATION AND THIS CAN THEN BE RESOLD AGAIN, PERHAPS SEVERAL TIMES, BEFORE THE BUILDING IS COMPLETED, THE AUCTION SYSTEM CAN RESULT IN A STRONG SPECULATIVE ELEMENT BEING INTRODUCED INTO THE LAND MARKET.
+! WOULD EMPHASISE, HOWEVER, THAT WHAT IS UNUSUAL IN THIS SITUATION IS NOT THE SUPPLY OF LAND BUT THE MASSIVE INCREASE IN DEMAND FUELLED BY THE BOOM AND THE EASY AVAILABILITY OF CREDIT.
+LAST SUMMER THE DOWN-PAYMENT FOR VALUABLE SITES WAS EFFECTIVELY INCREASED FROM ABOUT 15 PER CENT TO 30 PER CENT OF THE PREMIUM PAYABLE.
+THE GOVERNMENT WILL, DURING THE COMING MONTHS, BE CONSIDER ING THE POSSIBILITY OF FURTHER AMENDMENT OF TERMS RELATING TO PREMIUM FOR ALL TYPES OF LAND, INCLUDING INDUSTRIAL LAND.
+WE WILL ALSO BE CONSIDERING WHETHER INTEREST RATES ON INSTALMENT PAYMENTS SHOULD BE MORE CLOSELY RELATED TO MARKET RATES,+ SAID MR. JONES.
ALTHOUGH THE SUPPLY OF LAND FOR UTILITIES, SOCIAL SERVICES AND PUBLIC HOUSING MAY WELL APPEAR LARGE, MR. JONES CONTINUED, THE SUPPLY TO THE PRIVATE SECTOR WAS ALSO VERY CONSIDERABLE AND WAS CONTINUING TO RISE.
+HOWEVER, INTEND TO REVIEW RESERVATIONS FOR PUBLIC SECTOR ACTIVITIES TO SEE IF ANY OF THESE CAN BE RELEASED FOR SALE TO THE PRIVATE SECTOR.+
THERE WAS A SUBSTANTIAL NEED FOR LAND FOR GOVERNMENT FACILITIES INCLUDING PUBLIC UTILITIES, EDUCATION, SOCIAL SERVICES, RECREATION AND AMENITY, PUBLIC HOUSING, ROADS AND OTHER ESSENTIAL COMMUNICATIONS.
+THIS MEANS THAT, INEVITABLY, A HIGH PROPORTION OF LAND MUST BE USED FOR THESE DEVELOPMENTS, SOME OF WHICH, SUCH AS COMMUNICATIONS AND PUBLIC UTILITIES ARE ESSENTIAL TO SUPPORT PRIVATE DEVELOPMENT, MR. JONES SAID.
+EXPERIENCE IN THE PAST HAD SHOWN THAT TO A LARGE EXTENT PUBLIC HOUSING COMPLEMENTS AND BACKS UP INDUSTRY PY HELPING TO OBTAIN AN ADEQUATE LABOUR FORCE IN NEW AREAS, HE ADDED.
THE PROPORTION OF ABOUT 30 PER CENT OF THE LAND PRODUCED WHICH CAN BE DISPOSED OF TO THE PRIVATE SECTOR WAS NOW VERY SUBSTANTIAL INDEED COMPARED WITH PAST PERFORMANCE.