XN000022-1993-02-03 — Page 27

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WEDNESDAY, FEBRUARY 3, 1993

THE FINANCIAL SECRETARY TOLD REPRESENTATIVES

THAT THE EASING PEAK LAST

OF PROPERTY PRICES BY FIVE TO 15 PER CENT FROM THEIR SUMMER WERE HEALTHY CORRECTIONS.

HOWEVER, HE POINTED OUT THAT THE PRICE LEVELS ALMOST DOUBLE WHAT THEY WERE AT THE BEGINNING OF 1991.

WERE STILL

ACTIVITIES

HE ALSO WARNED THAT ANOTHER OUTBURST OF SPECULATIVE AND RISING PROPERTY PRICES COULD NOT BE RULED OUT IF THE CEILING WAS RELAXED TOO EARLY.

THERE WAS ALSO THE FACT THAT INTEREST RATES WERE STILL AT LOW LEVELS IN COMPARISON WITH CURRENT INFLATION.

THE FINANCIAL SECRETARY FURTHER NOTRD THAT THERE WAS CONSIDERABLE BACKING IN THE BANKING SECTOR FOR MAINTAINING THE CEILING AS THEY THEMSELVES WERE CONCERNED ABOUT THEIR EXPOSURE TO THE PROPERTY MARKET.

"THERE WAS ALSO A WIDE MEASURE OF SUPPORT AMONG THE COMMUNITY AND LEGISLATIVE COUNCIL MEMBERS, HE ADDED.

HOWEVER, HE ASSURED THE

WOULD BE KEPT UNDER REVIEW.

REPRESENTATIVES

THAT THE SITUATION

HE ADDED THAT IF AT SOME TIME IN THE FUTURE THE CEILING WAS TO BE RELAXED, SERIOUS CONSIDERATION SHOULD BE GIVEN TO THE INTERESTS OF GENUINE END-USERS AND FIRST-TIME HOME BUYERS, IF THIS PROVED TO BE A PRACTICAL POSSIBILITY.

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