TNAG-1734-FCO40-2447-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 216

Written answers to questions

REPLY BY THE HONOURABLE THE FINANCIAL SECRETARY

TO QUESTION NO 9

Property speculation

9. MR. CHEONG-LEEN asked:

Question: In view of the rising price trend in the local property market, will Government inform this Council whether it has plans to advise the public about the risk of property speculation and that excessive speculative activities could adversely affect or damage Hong Kong's steady aconomic growth and prosperity?

FINANCIAL SECRETARY:

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a rising market, the number of property transactions is likely to rise and some speculative activity must be expected to occur. However, up to now, speculation seems to be confined largely to a small number of popular residential developments. It does not yet appear excessive or significant enough to produce damaging effects on Hong Kong's economic growth and prosperity.

2.

While the Government will continue to monitor the situation closely, it must be for individual members of the public to decide upon their own purchase decisions. I would not envisage our giving the public specific advice about the risk of speculation but clearly it needs to be recognized that property prices can fall as well as rise.

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3.

With an abundant supply of new residential flats coming on stream, future increases in flat prices are likely to be restrained; the recent firming up of interest rates will also be a factor which may render speculation less attractive in future.