Property Bubble
樓市泡沫須從供應入手 宜增地積比建更多單位
文章日期:2012年8月27日

【明報專訊】THIS YEAR property prices have kept soaring mainly for two reasons - that flats have been very much in short supply and that interest rates have been extremely low. The right thing to do to get to the root of this problem is to increase supply. However, while the grass grows, the horse starves. Therefore, the Leung administration should use new thinking in responding to this challenge. An option worth taking is to increase the plot ratios of the sites in the government's development plans. By doing so the government can make it clear to market participants that it is determined to take such practicable measures that supply will go up very soon, thereby dispelling the misguided expectation that insufficient flat supply is bound to send property prices rocketing.

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