EXAMINATION OF RECOMMENDATIONS TO STIMULATE THE PRIVATE RESIDENTIAL MARKET

Abstract

After more than a year of sliding occupancy rates and property prices with no signs of a sustained recovery, the report of the Property Market Consultative Commitee raised hope that the stimulus needed to spark the recovery of the property sector would be provided by the Government. This paper examines the recommendations made by the commitee to stimulate the demand for private residential properties. Discussion centres on the strategies implied in these recommendations, to assess how effective they may be in achieving their intended objectives. The study indicates possibly unintended side effects which may or not be desirable. It is concluded that the recommendations are not likely to provide the stimulus for a quick recovery of the private residential market if they are all adopted. Suggestions for a different approach and further research are made.