Secretary for Housing, Planning & Lands Michael Suen says the Government will put forward measures to increase demand in the property market in October.

Measures being considered included the possibility of lowering the mortgage ratio and reducing stamp duty for property transactions.

Speaking on two radio programmes this morning, Mr Suen said the Government has to be cautious in making any decision on the mortgage ratio as it will affect the stability of the monetary system.

The issue must be discussed with the Monetary Authority, he added.

Mr Suen stressed that his Thursday announcement was to let the public know that the supply of flats will fall in the next three years as the number of units being built has continued to drop since 1998.

He said the SARS outbreak has adversely affected the property market, adding that the expected results of measures to boost the property market announced late last year could not be achieved.

He said the economy has improved after the SARS outbreak and he is optimistic that if the situation continues to improve, the property market will benefit.