According to the report conducted by five private agency associations, almost 80 % of interviewers thought that the current housing policy was confused enoungh to dampen the Hong Kong property market. Yesterday the five associations met Wong Shing Wah, Secretary of the Housing Bureau in demanding for a clear housing policy, a termination of Homeownerhsip scheme, a halting of the public housing flats sale and a lowering of the stamp fee.

Lun Chin Yim, chairman of the Hong Kong association of property agency, spoke to Wong Sing Wah that his association with other four property-related associations such as Hong Kong professional association of property agency,Hong Kong professional association of property consultants, the Federation of property agency and the association of New Territories property developers expressed a deep concern on the current property market, in the face of the plummeting of the general proptery price, the prevalence of negative assets and the increasing of property vacancy after the 1997 financial turmoil.

Sum Kok Fong, chariman of the Hong Kong professional association of property agency, pointed out that according to the recent investigation conducted by the five associations, almost 80 % of inverviewers considered the current housing policy very confused and thus adversely affect the property market; almost 70% considered that the decline of the property price is attributable to the housing policy. On the halt of the provision of 85,000 flats annually in average, more than half gave a positive comment.

Tang Yee Man said that the five associations have listed out six suggestions on the future housing policy. The suggestions include a clear direction of housing policy, a clear schedule of public housing production, a subsitution of the "Loan for Purchase" for the "Homeownership scheme", a transfer of Homeownership blocks into rental blocks, an ending of the rental houisng sale and of other market-detrimental measures.

According to the reply of Wong Sing Wah, Mr Tang said that the government would not stop the sale of rental blocks; but the government would consider to reduce the stamp fee, this suggestion which involved the issue of the government tax revenue and thus would be submited to the Secretary of Finance for consideration.

The article is translated from the original one published in Hong Kong Economic Journal