Property Prices

In early 1997, the property market began to revive, with property prices
rising steadily to the 1994 level, primarily due to growing desire among
the general public to buy flats to live in and for investment. In response to
a spate of speculative activities in the property market, especially at the
upper end of the market and particularly through the use of shell
companies, prompt measures were taken in January to restrict the
proportion of company purchasers and prohibit the change of directorship
before assignment. Further measures were taken in March to increase the
flat supply by extending the pre-sale period of private and subsidised flats.
These measures have been effective: speculation through shell companies
has disappeared; sale of flats were conducted in an orderly manner and
the property market has become more stable. In December 1997, prices
in money terms were 17.1 per cent higher than at the peak in 1994.

[Back] [Forward]