XN000022-1994-06-21 — Page 4

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TUESDAY, JUNE 21, 1994

"THE PAY INCREASE IS FAIR AND REASONABLE. IT ENABLES ALL CIVIL SERVANTS TO ENJOY REAL GROWTH IN THEIR SALARIES," MR SZE ADDED.

THE COST OF THE PAY ADJUSTMENT FOR THE CIVIL SERVICE AND SUBVENTED ORGANISATIONS IS ESTIMATED TO BE $6 BILLION IN 1994/95. SUBJECT TO THE PROVISION OF FUNDS BY FINANCE COMMITTEE OF THE LEGISLATIVE COUNCIL, CIVIL SERVANTS WILL RECEIVE THE REVISED SALARIES, DATING BACK TO APRIL 1, AT THE END OF JULY.

GOVERNMENT DETERMINED TO SEE ORDER IN PROPERTY MARKET

MEASURES

THE GOVERNMENT WILL NOT HESITATE ABOUT INTRODUCING IF EXCESSIVE SPECULATION AND EXPLOITATION IN THE MARKET RE-EMERGE, THE SECRETARY FOR PLANNING, ENVIRONMENT AND MR TONY EASON, SAID TODAY (TUESDAY).

PUNITIVE

PROPERTY

LANDS,

ADDRESSING A ROTARY PENINSULA CLUB LUNCHEON MEETING, MR EASON SAID NO ONE SHOULD UNDER-ESTIMATE THE GOVERNMENT'S DETERMINATION TO SEE MORE ORDER AND FAIRNESS IN THE PROPERTY MARKET.

"THIS IS NO EMPTY THREAT. ALTHOUGH WE DO NOT, AT THIS STAGE, THE NEED TO TAKE MORE DRASTIC ACTION, WE ARE PREPARED TO IF THE SITUATION WARRANTS IT, HE SAID.

SEE

TO AVERT THE NEED FOR PUNITIVE MEASURES, MR EASON SAID, IT WILL REQUIRE THE CO-OPERATION OF ALL CONCERNED.

"SPECULATORS SHOULD STAY OUT OF THE PROPERTY MARKET; DEVELOPERS SHOULD EXERCISE CARE IN SETTING PRICE AND CO-OPERATE IN REDUCING OPPORTUNITIES FOR SPECULATION IN PRE-SALE FLATS.

"BUYERS SHOULD AVOID RUSHING INTO THE MARKET PREMATURELY UNDER THE MISGUIDED BELIEF THAT PROPERTY PRICE WILL ALWAYS RISE; AND ESTATE AGENTS SHOULD OFFER FAIR AND OBJECTIVE INFORMATION AND ADVICE TO POTENTIAL BUYERS," HE SAID.

MR EASON SAID SOME DEVELOPERS HAD TAKEN THE INITIATIVE ΤΟ REDUCE PRICE AND HE WOULD LIKE TO SEE THE TREND TO CONTINUE.

"WE HAVE SEEN PRICE REDUCTION OF AROUND 5 TO 20 PER CENT IN THE PRIMARY MARKET IN RECENT MONTHS.

"PROFIT MARGINS SHOULD BE ABLE TO ACCEPT A FURTHER PRICE ADJUSTMENT DOWNWARD, AND THE COMMUNITY IS CLEARLY EXPECTING то SEE

THIS HAPPEN.

"KEEPING PRICES UP COULD RISK BOTH A REDUCTION IN SALES AND A RESURGENCE OF COMMUNITY CONCERN WHICH MIGHT LEAD TO FURTHER PRESSURE FOR MORE GOVERNMENT INTERVENTION, HE SAID.

**

MR EASON SAID THE ADMINISTRATION WOULD BE CAREFULLY MONITORING AND ASSESSING THE MARKET SITUATION, AND WISHED TO SEE A COOLING IN THE PROPERTY MARKET AS

THE RECOMMENDATIONS OF THE TASK FORCE ON LAND SUPPLY AND PROPERTY PRICE ARE IMPLEMENTED.

/HE WAS