Hong Kong Housing Problems and Solutions

Hong Kong Housing Problems and Solutions

Name: Liu Chun Hing Student Number: 201111028H Group: 5

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Content

Introduction--------------------------------------------------------------------p.3

Problem Discussion ------------------------------------------------------p.3-p.4

Plan (Improvement of Housing Policy)--------------------------------------p.4-p.5

Plan (Regulation of Property Developers)----------------------------------------p.5

Conclusion ----------------------------------------------------------------------p.6

Reference------------------------------------------------------------------------p.7

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1.Introduction
In recent years, Hong Kong citizen are facing high property prices problem which make them difficult to buy the house. I find that the property prices have increased about 50% from 2008 to 2012. In order to respond to public demands, the government should be responsible to decrease speculation to avoid the appearance of the high property prices and help people to buy their dream house easily.

2. Problem Discussion
There are three reasons which cause high property prices—speculation, insufficient supervision to the developers and the own problems of the businessmen.

Firstly, Speculators may buy houses in a lower price and then resell it in a higher price to earn profits in the short time. They speculate in luxury property which will cause increasing price in the housing market and make people feel difficult to buy houses. Finally, the more speculations appear, the more people will buy expensive flats.

Secondly, Hong Kong can become the world financial center which is mainly due to the laissez-faire economic policy .On the other hand; we know there are some drawbacks of the policy. This may cause insufficient supervision to the developers and lead to the domination of the businessmen in the market finally. Therefore, the public hope to have home ownership to tackle high property prices problem.

Thirdly,...