XN000022-1994-06-08 — Page 4

WEDNESDAY, JUNE 8, 1994

MR EASON SAID THE MAIN PRINCIPLES WHICH HAD UNDERPINNED THE TASK FORCE'S STUDY ARE:

THE CURRENT PROBLEM IS RELATED MORE TO MEETING THE HOUSING ASPIRATION OF A MORE AFFLUENT COMMUNITY THAN то INADEQUACY OF SHELTER;

OWING TO ITS INEXTRICABLY LINK TO THE BANKING SECTOR AND THE STOCK MARKET, THE RISK OF THE MULTIPLIER EFFECT OF A SHARP DOWNTURN IN THE PROPERTY MARKET SHOULD NOT BE

UNDERESTIMATED;

THE PROPERTY MARKET IS SENSITIVE TO FACTORS EXTRANEOUS TO HONG KONG AND BEYOND GOVERNMENT'S CONTROL; AND THE OBJECTIVE OF ANY GOVERNMENT INTERVENTION SHOULD BE ΤΟ ENSURE FAIR COMPETITION FOR ALL ON A LEVEL PLAYING FIELD;

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PROPERTY PRICES HAVE COME DOWN BY 10 PER CENT 15 PER CENT SINCE MARCH; AND POTENTIAL HOME BUYERS SHOULD MAKE A SENSIBLE ASSESSMENT OF FUTURE SUPPLY AND LIKELY PRICE RESPONSE IN THE LIGHT OF INCREASE IN BOTH LAND AND HOUSING SUPPLY.

MR BASON SAID: "AS A RESPONSIVE AND RESPONSIBLE GOVERNMENT, WE MUST ADDRESS PUBLIC CONCERN ABOUT PROPERTY PRICES, BUT AT THE TIME ADOPT MEASURES WHICH WILL NOT DAMAGE THE ECONOMY.

COMMUNITY, CAUSE

"FINDING THE RIGHT BALANCE BETWEEN COMPETING INTERESTS IN DETERMINING THE DOSAGE WHICH WILL MODERATE PRICES BUT A DRASTIC DOWNTURN, AND PREDICTING THE REACTIONS OF A SENTIMENT-DRIVEN AND VOLATILE MARKET IS A TALL ORDER.

SAMB

THE

NOT LARGELY

"THE RISKS INVOLVED CALL FOR A PRUDENT AND INCREMENTAL APPROACH," HE SAID.

THE TASK FORCE'S REPORT AND A LEAFLET OUTLINING THE MEASURES TO DAMPEN SPECULATION AND TO INCREASE HOUSING AND LAND SUPPLY WILL AVAILABLE

BE FOR COLLECTION FROM DISTRICT OFFICES AND THE GOVERNMENT PUBLICATIONS CENTRE LATER THIS AFTERNOON.

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GOVT TO MONITOR MEASURES ON PROPERTY PRICES * * * * *

THE GOVERNMENT WILL MONITOR THE IMPACT OF THE MEASURES ON PROPERTY PRICES AND HOUSING SUPPLY AND WITH FURTHER MEASURES IF NECESSARY THE FINANCIAL HAMISH MACLEOD, SAID THIS (WEDNESDAY) AFTERNOON.

+

NEWLY

ANNOUNCED WILL COME BACK SECRETARY, SIR

SPEAKING TO REPORTERS, SIR HAMISH SAID THE GOVERNMENT READY TO FINE TUNE MATTERS IF THAT PROVED TO BE NECESSARY.

HE SAID THE PACKAGE WAS AIMED AT FOCUSING MEASURES OF INCREASING THE SUPPLY.

STOOD

MOSTLY ON POSITIVE

/"BUT IT