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Anti-speculation measures to remain in force
Commenting on the preliminary findings of the Hong Kong Property Review 1995 published by the Rating and Valuation Department (RVD), the Secretary for Housing, Mr Dominic Wong, said today (Tuesday) that the Government was satisfied that the anti-speculation measures were achieving the desired result and that they should remain in force.
The analysis of the provisional findings collated by RVD indicated that the average transaction prices of private residential developments in Hong Kong had continued to fall in January 1995.
By mid-January, prices of residential developments, excluding prices of pre- sale units asked by developers, were on average 14% down from peak prices in April 1994.
"Domestic property prices have in general moderated, but they are still high despite recent price adjustments. Prices in January 1995 were still about 37% higher than those of January 1993," Mr Wong said.
He said asking prices of new flats offered by developers had fallen by about 10 per cent - 30 per cent from the peak in April last year, depending on locations.
"It shows that speculative activities in the property market have significantly subsided since the introduction of the anti-speculation measures in June last year. We are satisfied that these measures are achieving the desired results," Mr Wong said.
"Our aim remains to make home ownership available to as many people as possible. The package of measures introduced last year proved to be effective in reducing speculation," he added.
Commenting on the suggestions that the anti-speculation measures should be relaxed, Mr Wong said any such attempt was likely to encourage speculative activities again and push up property prices.
"The Government considers that the measures should remain in force as property prices are still out of reach of many prospective home buyers. That said, we have no intention of introducing new measures to influence the market," he said.