If Minister Khaw is worried about sharply rising prices, it increases the risk of additional anti-speculation measures coming out, or of the Government boosting supply beyond what the market can absorb. Already last week we've seen the Hong Kong Government raising the minimum down payment requirements for housing.
Property is not only a cyclical sector, but due to its nature there are significant time lags from when a policy is implemented to when we see the effects. These time lags amplify the ups and downs of the cycle as the increased supply that is being built today could get completed at a time when demand has fallen off. It is not easy for anyone to forecast three or four years into the future. Full story
